At a Glance
GSK Pharma India is like that rich NRI uncle — well-dressed, low-energy, and always giving cash gifts. A consistent dividend payer with elite margins, but 5-year sales growth of just 3%. While peers hustle in generics and exports, GSK just chills on legacy brands and British royalty.
1. 🚨 TL;DR
- Revenue (FY21 → FY25): ₹2,926 Cr → ₹3,749 Cr ✅
- Net Profit: ₹928 Cr in FY25 ✅ (boosted by other income)
- Operating Margin: 31% in FY25 ✅
- Dividend Payout: 99% ❗
- Book Value: ₹115 vs CMP ₹3,199 ❌
- Fair Value Range: ₹1,900 – ₹2,200
- Verdict: Excellent margins, zero growth ambition, royalty-fee cash leakage — the Indian pharma tortoise.
2. 🧪 Business Model: Paracetamol & Dividends
GSK Pharma India is the Indian arm of UK-based GlaxoSmithKline plc, and operates in:
- Therapeutics: anti-infectives, dermatology, vaccines, respiratory
- Top Brands: Augmentin, Calpol, Ceftum, Betnovate, and vaccines like Boostrix, Shingrix
- Distribution: Focuses on prescription meds, not generics, no exports
It’s not a high-growth company. It’s a branded formulation legacy play with strong doctor loyalty and zero hustle for scale.
3. 📉 Financials: Slow Growth, Fat Payouts
Revenue:
- FY21: ₹2,926 Cr
- FY22: ₹3,278 Cr
- FY23: ₹3,252 Cr
- FY24: ₹3,454 Cr
- FY25: ₹3,749 Cr ✅
5-Year Sales CAGR: ~5.1% — Basically flat, despite India’s booming pharma market.
Net Profit:
- FY21: ₹358 Cr
- FY22: ₹1,695 Cr 🧨 (boosted by ₹1,322 Cr one-time income)
- FY23: ₹611 Cr
- FY24: ₹590 Cr
- FY25: ₹928 Cr ✅
FY25 profit includes ₹149 Cr other income. Remove that, and you’re left with ~₹775 Cr real profit.
OPM:
- FY21: 20%
- FY22: 23%
- FY23: 25%
- FY24: 26%
- FY25: 31% ✅
Operating metrics are gold. This company knows how to squeeze margins, even on old products.
4. 📊 Key Ratios & Dividend Obsession
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| OPM (%) | 25% | 26% | 31% ✅ |
| Net Profit | ₹611 Cr | ₹590 Cr | ₹928 Cr ✅ |
| ROCE | 36% | 51% | 63% ✅ |
| ROE | 36% | 47% | 47% ✅ |
| Dividend Payout | 89% | 92% | 99% ❗ |
| EPS | ₹36.05 | ₹34.83 | ₹54.75 |
| Book Value | ₹115 | ₹115 | ₹115 |
| CMP / BV | ~28x ❌ | ~28x ❌ | ~28x ❌ |
5. 💉 Operational Metrics: 100-Year-Old Energy
- New launches: Limited
- Growth driver: Price hikes, not volume
- Vaccine business: Moderate, not aggressive
- Exports: Absent
- R&D: UK parent handles innovation — Indian arm just markets
This is not Dr. Reddy’s or Cipla. This is a fully imported, slow-lane operation in local clothes.
6. 🧾 Shareholding Pattern
| Shareholder | Mar 2025 |
|---|---|
| Promoter | 75.00% |
| FII | 4.52% |
| DII | 7.79% |
| Public | 12.69% |
FII interest is slowly rising — probably betting on the dividend stream, not the growth.
7. 📉 Valuation: When PE Meets RIP
CMP: ₹3,199
FY25 EPS (adjusted): ₹45–₹50
P/E (real): ~64–70x ❌
EV/EBITDA: Elevated
Dividend Yield: 1.3% ✅
No growth, no new trigger
Fair Value Range:
- At 30x adjusted EPS (historical avg): ₹1,900 – ₹2,200
- Only worth a premium for stability lovers. But not at 62x P/E.
🧠 Final Verdict: The Safest Midlife Crisis You Can Buy
✅ Top-tier margins
✅ High ROCE/ROE
✅ Ridiculous dividend reliability
But:
❌ No revenue growth
❌ UK-parent obsessed
❌ Expensive as hell
GSK Pharma India is the LIC of pharma stocks — stable, boring, and overpriced. Unless you’re building a dividend temple, move on.
✍️ Written by Prashant | 📅 19 June 2025
🏷️ Tags
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