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Company's annual report
Topline growth rate
COGS %
SGA%
R&D expense%
Working apital re!uirements %
Capital expen"iture %#$etie tax rate
Depreiation as a % net lok
eta
Det(e!uity ratio
Risk )ree rate
#!uity market risk premium
*ong(term "et
ook alue o) e!uity
Cost o) "et
*ong(term growth rate
#+,#-TDA
.(# ratio
/o o) shares outstan"ing
#.S
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Consoli"ate" inome statement as per ompany reports
.ART-C0*ARS
Revenues
Cost o) reenues
Gross proft
Selling1 general & a"ministratie expensesResearh an" "eelopment expenses
Other 2inome3,expense1 net
Results rom operating activities
/et 4nane inome
Share o) pro4t o) e!uity aounte" inestees1 net o) inome tax
Proft beore income tax
-nome tax 2expense3,ene 4t
Proft or the period
Average SGA as a % o Sales
Average COGS as a % o sales
Average R& expense as a % o sales
!"#$ margin
Average !"#$ margin orecasted b !lara Capital
Average !"#$ margin orecasted b "& Securities
$a'ing the average o the above our or (C(( pro)ections*
Average !"#$A margin orecasted b !lara Capital
Average !"#$A margin orecasted b "& Securities
$a'ing the average or orecasting or+ard !"#$A margin
Consolidated +or'ing capital particulars
PAR$#C,-ARS
Aounts Reeiale 2A3
-nentories 23
Tra"e Aounts .ayale2C3
.or'ing Capital /A0"1C2
Other Current Assets 2D3
Total Current Assets 2A55D3
Short an" long term loans an"
orrowings1 urrent portion 2#3
Other Current *iailities 263
Total Current *iailities 2C5#563
/et working apital 2A55D(2C5#563
3.C as a % o sales
#$etie tax rate
Average e4ective tax rate
iluted !PS /Rs7 per share2
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Capex and depreciation calculations /in RS5 6#--#O3S2
.artiulars
Gross bloc'
*ess8Aumulate" "epreiation
3et bloc'
Capital expen"itureCapex as a % o) sales
Average capex as a % o sales
Depreiation
epreciation rate
TotalTotal gloal "eman" )or generi "rugs to inrease at a CAGR o)
There)ore1 terminal growth assumption
Growth rate )oreasts
Growth )oreast as per #lara Capital
Growth )oreast as per &9 Seurities
Average gro+th rate
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@arket returns
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57/110
(De(=; =EB>7;?7;> =E=7; =E7
B(De(=; =E>=7 =E>=7B =E??7=? =E;7=
=>7;
=?(De(=; =E
7/26/2019 GSK Pharmaceuticals Valuation
58/110
(6e(=? =E>BB7=E =E7=B7>E =E>?7 =E=7E =EB
=;(6e(=? =EE7B =E>?7>? =E?7>? =E>=7
=(6e(=? =EE7;> =E>>7 =E;7E; =E>B7;= =E?>7B;
;
;=(6e(=? =E>E7 =E>>7> =E;E7B =E?;>7?
;;(6e(=? =E?=7E =E =E;E7? =E?=B7(6e(=? =E?>7?? =E==7= =E;?B7E =E??=7E
;(6e(=? =E;E; =E;=;7E; =E=?7>
(@ar(=? =EB7B =EB
7/26/2019 GSK Pharmaceuticals Valuation
59/110
=(Apr(=? =?>7?; =BB=7?? =?;>7B? =B7E?
=B(Apr(=? =BB?7> =E7 =B?7 =B?=7=
=(Apr(=? =E>7? =E7 =E=7= =E7BB
?(@ay(=? =EB =EB7> =E>;7? =E>B>7
(@ay(=? =E>B=7 =EE7;E =E>>7?= =EB?7
B(@ay(=? =EEB7?? =EE=B7 =EEB7?? =E7E>
(@ay(=? =EE>
7/26/2019 GSK Pharmaceuticals Valuation
60/110
;>;7=;
;B(Iun(=? =B=7== =E;>7B> =7; =B>7E>
;(Iun(=? =E;7 =E>E7? =E?B7>B =E>BB7?E
;(Iul(=? =E>B?7E? =E>E7= =E;7B> =E?7;
?(Iul(=? =E?B7== =E?B7== =E=B7?= =E=BB7B
(Iul(=? =E;>7=; =E>777BE =E7;
(Iul(=? =E=7E =E;;7E =E=>7E; =E?;7BB
E(Iul(=? =E?EE7?B =E =E? =E?E7
=7E? =E;?B7E= =E;E7=;
==(Iul(=? =E7 =EB;?7>= =E7 =EB77>E =EE>7B=>(Iul(=? =EE;7= ;
7/26/2019 GSK Pharmaceuticals Valuation
61/110
;(Aug(=? = =B;7=E =7E? =>>7=?
;B(Aug(=? =
7/26/2019 GSK Pharmaceuticals Valuation
62/110
?=(Ot(=? ;=7> ;=7B= ;
7/26/2019 GSK Pharmaceuticals Valuation
63/110
(Ian(= ;
7/26/2019 GSK Pharmaceuticals Valuation
64/110
==(@ar(= ;=E=7? ;;; ;=BB;7== ;=;7;
=;(@ar(= ;=BE?7?; ;=E>7E> ;=B7= ;=>7;;
=?(@ar(= ;=B?7= ;=EE=7? ;=B;?7?; ;=>B?7 ;= ;;7? ;=B;7 ;=B;7 ;=BB7E; ;=B;>7>; ;=B>>7?;
;(@ar(= ;=;B7> ;; ;;>7
;>(@ar(= ;=E7?= ;;7;=
;(@ar(= ;;=?7B= ;;=B;7; ;;>7;? ;;>7BB ;;;E>7> ;;7
;(Apr(= ;;>> ;;>E;7= ;;B?7 ;;>>=7E?(Apr(= ;;>E7=E ;;; ;;?E7; ;;>;>7;= ;;??E7 ;;?>E7>
B(Apr(= ;;?>>7> ;;=7; ;;=EB7>= ;;??7>
E(Apr(= ;;?E7;= ;;B(Apr(= ;;E7??7= ;;;B7?E ;;;BB7;?
=B(Apr(= ;;?;B7B ;;7E ;;?=;7=E ;;;7
;=(Apr(= ;;7B> ;;BE>7> ;;?7B> ;;B7?
;;(Apr(= ;;BB=7; ;;>?7
7/26/2019 GSK Pharmaceuticals Valuation
65/110
;>>7?= ;>B7= ;;EE7>? ;?B7
;=(@ay(= ; ;=>7B ;;E77; ;>;7B ;?;7 ;?B7
;?(@ay(= ;>?>7= ;B>7 ;B
;(@ay(= ;E=?7E ;>=B>7;; ;??7E ;B=7
;B(@ay(= ;B7= ;BBB7?= ;;;7?? ;>E7>=
;(@ay(= ;>E=7= ;?7?? ;7= ;>>7;?7=? ;>;7; ;; ;;?7=>
?
7/26/2019 GSK Pharmaceuticals Valuation
66/110
;;(Iul(= ;>B7 ;B>E7=? ;>?=7 ;>B>7; ;>>?=7? ;>B;?7=
>(Aug(= ;>=B7 ;>E;7?; ;>>;7? ;>E> ;>E;=7> ;>>7;B
B(Aug(= ;>7B= ;>BB7 ;>>;7 ;>>E7;?;7; ;>?;E7=
==(Aug(= ;>B7B ;>>>?7 ;>?B7 ;>>=E7;
=;(Aug(= ;>B
7/26/2019 GSK Pharmaceuticals Valuation
67/110
;(Sep(= ;;E7? ;B;=7
7/26/2019 GSK Pharmaceuticals Valuation
68/110
E(De(= ;=?7;; ;=>B7>? ;BB?7; ;BBEB7
7/26/2019 GSK Pharmaceuticals Valuation
69/110
=;(6e(=> ;> ;?7>; ; ;7=
=?(6e(=> ;7EE ;E=>7B ;?>7B ;E ;E=B7?> ;E7
=(6e(=> ;E=?7;;7 ;E= ;E;7;B
; ;E7;= ;E;7 ;E?=7> ;E?;7E ;E=?7= ;EB>7==;(6e(=> ;E> ;E=?7E ;E ;E==>7?; ;E;E7? ;EB7= ;E ;>7=; ;E;>7??7; ;E>B7?; ;E;>E7BB ;E>E7=
?(@ar(=> ;E> ;EE?B7;B ?=7?; ;E=;7B ;E7E>
E(@ar(=> ;E?=7> ;E?;=77B> ;?7;? ;E7=B
=;(@ar(=> ;BE7= ;EB=7
7/26/2019 GSK Pharmaceuticals Valuation
70/110
;;(Apr(=> ;BB>7 ;BEB7; ;B?>7 ;BE ;BEBB7;B ;7 ;B ;B;E7== ;B?7B ;B?B7E
;B(Apr(=> ;B>>7E ;B>B7; ;B==7>> ;B=B7EE
;(Apr(=> ;B;=>7= ;B;7= ;B ;B?E7?
;E(Apr(=> ;B?E>7B= ;B?7E ;B=B7> ;B;;>7E?
? ;B;;7 ;B;;7 ;EB7> ;B ;B;?B7> ;B=>E7> ;BEE
>(@ay(=> ;B>=7?; ;B
7/26/2019 GSK Pharmaceuticals Valuation
71/110
;>(Iun(=> ;B ;B?>7B ;BE>7EB
;(Iun(=> ;B7= ;B==7
;E(Iun(=> ;B>=77?; ;B;7=>
? ;B;B7?E ;B=7>? ;B>B ;BB ;B;?7> ; ;BBEE7E= ; ;BEB?7=; ;=?>7? ;BEB7> ; ;B>B7; ;;?>7?= ;BBB7 ;; ;;;7;? ; ;7B; ;BB7B;
E(Iul(=> ;B=7E ;BBE7=? ;B>B?7
= ;BB7? ;BB;E7 ;B>? ;BB?E7?; ;7 ;BE7E; ;E ;B>?7E ;BE?;7E
=>(Iul(=> ; ;;>E7B ;B7? ;;>7= ;7=;
=B(Iul(=> ;B7?; ;=B7 ;?7?=; ;>7; ;>E7=? ;?=E7? ;; ;?=7; ;>=7 ;=>E7; ;>7; ;B7?? ;?=>7?B ;?B ;?E ; ;==B7> ;B>;E7>B ;B>=7?
;(Iul(=> ;B? ;B=7?E ;B>E7;?
;E(Iul(=> ;B>
?=(Iul(=> ;B=7>= ;==7=B ;B=7>= ;==7>
?(Aug(=> ;7 ;;;?7 ;;E=7 ;?>E7E ;=?7E ;;E7=?
B(Aug(=> ;?;B7== ;??>7B ;=E?7E? ;;?7?E
7/26/2019 GSK Pharmaceuticals Valuation
72/110
Returns eta alulations8
Coariane 2stok returns1 market returns3 >7
7/26/2019 GSK Pharmaceuticals Valuation
73/110
(
7/26/2019 GSK Pharmaceuticals Valuation
74/110
%
(
7/26/2019 GSK Pharmaceuticals Valuation
75/110
%
=7=?%
(=7%
(
7/26/2019 GSK Pharmaceuticals Valuation
76/110
(
7/26/2019 GSK Pharmaceuticals Valuation
77/110
7/26/2019 GSK Pharmaceuticals Valuation
78/110
7/26/2019 GSK Pharmaceuticals Valuation
79/110
(=7=%
(
7/26/2019 GSK Pharmaceuticals Valuation
80/110
(
7/26/2019 GSK Pharmaceuticals Valuation
81/110
(=7=%
(;7?
7/26/2019 GSK Pharmaceuticals Valuation
82/110
(
7/26/2019 GSK Pharmaceuticals Valuation
83/110
(
7/26/2019 GSK Pharmaceuticals Valuation
84/110
7/26/2019 GSK Pharmaceuticals Valuation
85/110
7/26/2019 GSK Pharmaceuticals Valuation
86/110
(
7/26/2019 GSK Pharmaceuticals Valuation
87/110
;7==%
(
7/26/2019 GSK Pharmaceuticals Valuation
88/110
(;7B%
7/26/2019 GSK Pharmaceuticals Valuation
89/110
%=7?%
;7;;%
=7>?%
?7BB%
7/26/2019 GSK Pharmaceuticals Valuation
90/110
7/26/2019 GSK Pharmaceuticals Valuation
91/110
(
7/26/2019 GSK Pharmaceuticals Valuation
92/110
(
7/26/2019 GSK Pharmaceuticals Valuation
93/110
7/26/2019 GSK Pharmaceuticals Valuation
94/110
=7;=%
7/26/2019 GSK Pharmaceuticals Valuation
95/110
7/26/2019 GSK Pharmaceuticals Valuation
96/110
(=7=>%
7/26/2019 GSK Pharmaceuticals Valuation
97/110
%
=7
7/26/2019 GSK Pharmaceuticals Valuation
98/110
7/26/2019 GSK Pharmaceuticals Valuation
99/110
7/26/2019 GSK Pharmaceuticals Valuation
100/110
< =
6:; 6:;
BoB gro+th rate orecasts 17;5;;%
3et Sales 7=:D7:< 788D8?;
#-T ?BE ?=;B
3OPA$ 99?
7/26/2019 GSK Pharmaceuticals Valuation
101/110
; ?
6:;
7/26/2019 GSK Pharmaceuticals Valuation
102/110
Cost o) apital estimation
-nterest on long(term "et 2as per ompany reports32in -/R millions3
Outstan"ing long term "et as o) @arh ;2-/R millions38
.retax ost o) "et8
Total sharehol"ers' )un"s as o) @arh ;
Weight o) "etWeight o) e!uity
=< year G(se with time to maturity as o) ;
7/26/2019 GSK Pharmaceuticals Valuation
103/110
7B
?=7;
=>7
7/26/2019 GSK Pharmaceuticals Valuation
104/110
7/26/2019 GSK Pharmaceuticals Valuation
105/110
Growth )oreast o) #arnings per share8
Dilute" #.S 2as per ompany reports3
:o: growth
was"
6orwar" 4nanials )or 6:=#Dilute" #.S 26:=#3
/et Sales 26:=#3 2in -/R million3
Outstan"ing "et 26:=#3 2-/R millions3
Sales per shares
#-TDA 26:=#32-/R @illions3
Aerage )orwar" @ultiples in -n"ian .harma in"ustry as per "ata otaine" )rom loo
#+,Sales
#+ o) 4rm
+alue o) e!uity+alue per share as per #+,sales multiple
#+,#-TDA
#+ o) 4rm
+alue o) e!uity
+alue per share as per #+,#-TDA multiple
.,#
#stimate" prie per share as per .,# multiple
.,Sales per share
#stimate" prie per share as per .,Sales multiple
7/26/2019 GSK Pharmaceuticals Valuation
106/110
;
7/26/2019 GSK Pharmaceuticals Valuation
107/110
3ame !st PI! Current Br Current 6ar'et Cap
Aerage ?=7BB >
7/26/2019 GSK Pharmaceuticals Valuation
108/110
PI! Ratio /$$62 PI! Ratio (B 9 !EI!"#$A /$$62 !EI!"#$A /(B72
;7= ;;7E ;?7> =7>
?=77?>
?>7?= ;;7=; ;7 =E7B=7B> ;=7== ;7= ;
7/26/2019 GSK Pharmaceuticals Valuation
109/110
!EISales /$$62 !EISales /(B72 PISales Ratio /$$62 PISales Ratio /(B72
7=> >7= >7B; >7?
7E 7= 7 7??
7; >7B 7? >7
>7?; 7 >7;? 7=;
?7 ?7B ?7==
>77?= 7 7B /7A7
7; 7= 7; ?7E=
?7> ?7;? ?7; /7A7
7B ;7; 7 ;7>
/7A7 /7A7 /7A7 /7A7
B7; B7;> 7= 7>
;7= ;7E ;7B= /7A7
;
7/26/2019 GSK Pharmaceuticals Valuation
110/110
PISales Ratio /(B92 P!G Ratio PI(C( PI"oo' !EIShr
?7>E =7B> E=7 7> ;>>>7=
?7 =7> B>7;; B7? /7A7
?7E= =7?E =7> E77> /7A7
;7 =7=? =7BB =7E >B7 B7B ?B=7>
=