SmithKline Pharma: A weak prescription - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

SmithKline Pharma: A weak prescription

Jun 15, 2000

SmithKline Beecham has been undergoing a tough time since the last 12 months. The 38% duty on Engerix its Hepatitis B vaccine coupled with the price control imposed on its B complex vitamin Zevit put paid to the topline growth over the last year. Its flagship brand Iodex continues to face tough competition from the likes of Paras Pharma’s ‘Moov’, Elder Pharma’s ‘Tiger Balm’ and ‘Amritanjan’.

There have been press reports in the past that the company is introducing its new anti–meningitis vaccine via its 100% subsidiary SmithKline Beecham Asia. Interestingly, this company has no manufacturing facility. Thus it even gets Crocin and Eno (the two other brands under its control) manufactured by SmithKline Pharma which derives a manufacturing fee for the same.

At present, however there are unconfirmed reports of ‘Avandia’ its block buster anti–diabetes drug being introduced through SmithKline Beecham Asia. If these turn out to be true the only source for the company to improve its topline would also vanish.

Particulars (Rs m) FY99 FY00E
Sales 3,295.0 2,636.0
Net Profit 247.0 129.0
EPS (Rs) 8.4 4.4
P/E   33.6

Though the overall pharmaceutical sector is likely to grow by at least 10%, SmithKline Pharma’s topline is expected to show a de–growth of 20% in the current year. The stock quotes at a price of Rs 147 (Rs 445/128) and is unlikely to fly, unless the parent introduces new products through its listed subsidiary.

Equitymaster requests your view! Post a comment on "SmithKline Pharma: A weak prescription". Click here!

  

More Views on News

5 Stocks to Watch Out for Amid the Omicron Outbreak (Views On News)

Dec 3, 2021

As the new variant of Covid-19 emerges, keep an eye on these stocks.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6% (Views On News)

Sep 30, 2021

The divestment of 6.6% stake by the promoter is considered to be one of the largest block deals of the market.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK SMITHKLINE PHARMA

  • Track your investment in SMITHKLINE PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS