In addition to vaccines, GSK Pharma would also be introducing innovative drugs to treat endometrial and ovarian cancer. However, the current valuation captures the earnings upside. Maintain Neutral.

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Motilal Oswal Report

GlaxoSmithKline Pharmaceuticals Ltd. delivered a better-than-expected performance in Q3 FY25, largely driven by robust volume growth in the general medicine segment and a continued scale-up in vaccine offtake. Notably, GSK Pharma strengthened its market share in top brands like Augmentin, Ceftum and T-bact. It also expanded its presence for its respiratory products.

We raise our earnings estimates by 2%/5%/7% for FY25/FY26/FY27 to factor in-

  1. differentiated launches in cancer therapy,

  2. scale-up of vaccine business,

  3. enhanced efforts to boost vaccine prospects.

We value GSK Pharma at 33 times 12 months forward earnings to arrive at a target price of Rs 2,170.

Compared to a 9% Ebitda CAGR over FY22-24, we expect GSK Pharma to deliver a 19% Ebitda CAGR over FY25-27, driven by niche launches, market share gain, and enhanced reach. In addition to vaccines, GSK Pharma would also be introducing innovative drugs to treat endometrial and ovarian cancer. However, the current valuation captures the earnings upside. Maintain Neutral.

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. Read more on Research Reports by NDTV Profit.The current valuation captures the earnings upside. hence Motilal Oswal maintains Neutral rating on SGK Pharma.  Read MoreResearch Reports 

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