Burroughs Wellcome: Following Glaxo's footsteps - 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?  

Burroughs Wellcome: Following Glaxo's footsteps

Jul 26, 2000

Burroughs Wellcome has followed Glaxo's footsteps in declaring impressive second quarter results. While turnover has increased 22.9%, the bottomline has jumped more than 35%.

(Rs m) 2QFY99 2QFY00 Change
Sales 489 601 22.9%
Other Income 43 40 -7.2%
Expenditure 398 479 20.3%
Operating Profit (EBDIT) 91 122 34.6%
Operating Profit Margin (%) 18.5% 20.3%  
Interest 7 4  
Depreciation 6 6 -11.3%
Profit before Tax 121 153 26.5%
Other Adjustments      
Tax 48 55  
Profit after Tax/(Loss) 72 98 35.3%
Net profit margin (%) 14.8% 16.3%  
No. of Shares (m) (eoy) 9.2 9.2  
Diluted no. of shares (m) 9.2 9.2  
Diluted Earnings per share* 31.5 42.6  
*(annualised)      

Though Burroughs Wellcome has an older portfolio of products as compared to Glaxo, the company has an advantage in that lesser number of its brands fall under the Drug Price Control Order. However, what products have led the company's topline growth will only be confirmed at the analysts meet tomorrow.

The company is not being amalgamated with Glaxo primarily due to the fact that payscales at Burroughs are higher than those at Glaxo. While the workers are unwilling to shift to lower payscales, the management is unwilling to increase the payscales overall, to prevalent levels in Burroughs.

The stock quotes at Rs 340 which implies an earning multiple of 8 times of calender year 2000 earnings.

Equitymaster requests your view! Post a comment on "Burroughs Wellcome: Following Glaxo's footsteps". Click here!

  

More Views on News

Points to Keep in Mind Before Subscribing to Krishna Institute of Medical Sciences' IPO (Views On News)

Jun 15, 2021

All you need to know about the IPO of Krishna Institute of Medical Sciences.

Why Did Shares of Divi's Lab Rally Today? (Views On News)

Jun 10, 2021

The stock jumped 3.6% in intraday trade to hit its 52-week high.

Laurus Labs Hits New Life High. Up 500%+ in One Year (Views On News)

Jun 8, 2021

Laurus Labs trades higher for the eight straight day, soars 73% in 3 months.

Jubilant Pharmova Drops 6% on Weak March Quarter Numbers (Views On News)

Jun 8, 2021

Here's a rundown on the latest quarterly results of Jubilant Pharmova.

Lupin Gains 16% in a Month. Here's Why it Could Rally More (Views On News)

Jun 4, 2021

Recent developments in digital healthcare and revised targets by brokerages send Lupin shares flying.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK BURROUGH WEL

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

MARKET STATS