GSK Pharma shares gained by 20 percent on Monday, February 17, as brokerages like ICICI Securities and Motilal Oswal continue to maintain positive rating of the stock. GlaxoSmithKline Pharmaceuticals Ltd shares are currently trading at Rs 2,421 which is at an increase of 20 percent.
ICICI Securities raised its estimates on GSK Pharma for the company’s FY25–26E earnings per share, to approximately 5 to 6 percent. This was mainly due to better margin outlook. Therefore, it upgraded its rating of the shares to ‘Add’ with lower target price of Rs 2,250 based on 38x FY26 estimates of earnings per share.
Meanwhile, Motilal Oswal also increased its earnings estimates for the company by 2 percent/5 percent/7 percent for FY25/FY26/FY27 to factor in a) differentiated launches in cancer therapy, b) scale-up of vaccine business, c) enhanced efforts to boost vaccine prospects. The brokerage valued GSK Pharma at a target price of Rs 2,170.
For the quarter ended December, of the current fiscal year 2025, the company’s revenue from operations grew by 17.9 percent YoY to Rs 9.5 billion while its gross margin (GM) contracted by 150bp YoY, to reach 62.2 percent. The decline was a result of a change in the product mix.
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