GSK Consumer Weak volumes impact performance ACCUMULATE::Emkay

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GSK Consumer

Weak volumes impact performance

ACCUMULATE

CMP: Rs 2,383                                       Target Price: Rs 2,590

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n     Lower volume growth of 6.5% in the MFD category  impacts revenue - net sales growth at 9.5% yoy and APAT growth at 15% yoy - lower than our estimates

n     EBITDA margins maintained at 20.5% driven by higher production absorbing fixed overhead costs

n     Confirmation on pick-up in volume growth would drive stock price performance in near term

n     No change in earnings – CY11E EPS at Rs 86.6 and  CY12E EPS at Rs 103.6 - Maintain ‘ACCUMULATE’ with target price of Rs 2,590