GSK Consumer Volume led growth… Maintain Accumulate ::Emkay

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GSK Consumer

Volume led growth… Maintain Accumulate

ACCUMULATE

CMP: Rs 2,388                                       Target Price: Rs 2,547

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n     GSK Consumer’s sales growth of 22% yoy to Rs 6.5 bn and PAT growth of 15% yoy to Rs 825 mn is in line with our expectations

n     Volume growth pick-ups to 14% yoy in the domestic malted food beverage segment, with Horlicks growing at 16% and Boost at 11% for this quarter

n     Hikes prices by 2.3% in July – likely to aid margins in ensuing quarters. However, we expect operating margins would still decline 30 bps yoy to 16% for CY11E

n     Revise our EPS estimates for CY11E by -2.3% to Rs 84.6 and  CY12E by -1.7% to Rs 101.9 - Maintain ‘ACCUMULATE’ rating with target price of Rs 2,547/share