GlaxoSmithKline Pharmaceuticals Limited

Healthcare — Drug Manufacturers - General · NSE

₹2,567.90+₹43.20 (+1.71%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by moderate debt load.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of GlaxoSmithKline Pharmaceuticals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GlaxoSmithKline Pharmaceuticals Limited manufactures, distributes, and trades in pharmaceuticals in India and internationally.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees3,103

Annual revenue₹3,808 Cr

How does it make money?

Turns over ₹3,808 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 3,103 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 55.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 45.7% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 11.0% and earnings to grow about 15.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.0%

Est. earnings growth+15.1%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +18% while net margin moved +44% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+44%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 40.7x is demanding — it needs sustained high growth to justify
✓ P/E is 23% below its own historical median of 52.7x — cheap by its own standards
✗ P/B of 19.19x is a steep premium to book
✓ Dividend yield of 2.22% pays you to wait

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.7x

3Y Median

52.7x

40 monthly readings · mean 58.8x · range 39.5x–97.3x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 3y median of 52.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 22% above the peer median of 33.3x.

vs. its own history

Cheap

52.7x median over 40 months · -23%

vs. sector peers

Expensive

33.3x median of 4 peers · +22%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.9x

PEG

2.11

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 27.1% to 36.1% over 3 years.
Cash generation is improving
Free cash flow is up 93% over 3 years.
Return on equity is rising
ROE has improved from 35.1% to 45.7%.
Return on capital is rising
ROCE has improved from 41.9% to 55.4%.
High return on capital employed
ROCE of 55.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 114% over 3 years, from ₹16 Cr to ₹33 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 42% against revenue up 18% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 55.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 27.1% to 36.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 42% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 22% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 34%✓ 36.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was 16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹848 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 52%✓ 55.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹43,502 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

40.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

19.19x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹63.05

Profitable

Profitable on a per-share basis

ROE

45.7%

Strong

Strong capital efficiency

ROCE

55.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.47x

Moderate

Moderate leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.22%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹848 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

32.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

29.8%

Good

Healthy core-business profitability

Net Margin

27.0%

Good

Strong bottom-line conversion

Current Ratio

2.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2710.6 / 2800.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,226 Cr	₹3,442 Cr	₹3,726 Cr	₹3,808 Cr	+5.7%
EBITDA	₹874 Cr	₹982 Cr	₹1,255 Cr	₹1,375 Cr	+16.3%
EBITDA Margin	27.1%	28.5%	33.7%	36.1%	—
PAT (Net Profit)	₹611 Cr	₹590 Cr	₹928 Cr	₹1,036 Cr	+19.3%
EPS	₹36.05	₹34.83	₹54.76	₹61.15	+19.3%
ROE	35.1%	33.2%	47.5%	45.7%	—
ROCE	41.9%	40.3%	57.3%	55.4%	—
Total Debt	₹16 Cr	₹19 Cr	₹10 Cr	₹33 Cr	+28.9%
Free Cash Flow	₹440 Cr	₹551 Cr	₹1,265 Cr	₹848 Cr	+24.4%

🟢 Revenue has grown at 5.7% a year over 3 years.

🟢 EBITDA has grown at 16.3% a year over 3 years.

🟢 EBITDA Margin has risen from 27.1% to 36.1% over 3 years (+9.0 pts).

🟢 PAT (Net Profit) has grown at 19.3% a year over 3 years.

🟢 EPS has grown at 19.3% a year over 3 years.

🟢 ROE has risen from 35.1% to 45.7% over 3 years (+10.6 pts).

🟢 ROCE has risen from 41.9% to 55.4% over 3 years (+13.5 pts).

🔴 Total Debt has grown at 28.9% a year over 3 years.

🟢 Free Cash Flow has grown at 24.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,324 Cr

Total Liabilities

₹2,056 Cr

Cash & Equivalents

₹1,102 Cr

Operating Cash Flow

₹903 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

10.1%

Insider Holding

75.6%

Corporate Actions

Dividend Rate

₹57

Ex-Dividend Date

29 May 2026

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹3,097.25

+20.6% vs CMP

Target Range

₹2,900 – ₹3,500

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

4 mixed2 general

GlaxoSmithKline Pharma Share Price

Upstox, 16 Oct

Half Yearly Results, Half yearly Earnings for GSK Pharma

The Economic Times, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

GlaxoSmithKline Pharmaceuticals (NSEI:GLAXO) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

GSK plc (GSK) Stock Price, News, Quote & History

Yahoo! Finance Canada, 16 Oct

GlaxoSmithKline Pharmaceuticals shares rise 2.04% in today's trade

Moneycontrol.com, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Glaxosmithkline Pharmaceuticals Share Price rises 4.17%

Univest, 28 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑