29 July 2020
1QFY21 Results Update | Sector: Healthcare
GSK Pharma
Estimate change
TP change
Rating change
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CMP: INR1,482
TP: INR1,355 (-9%)
COVID-19-led weakness in performance
Outlook to improve gradually
Neutral
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
GLXO IN
169
251.1 / 3.3
1722 / 1033
-9/-5/23
95
GSK Pharma (GLXO)’s performance for the quarter was deeply impacted by
the COVID-19-led disruption. As a result, the company posted the lowest
revenue recorded in the past 16 quarters. The severity amplified with
reduced operating leverage. The outlook is expected to gradually improve
with the easing of the lockdown.
We reduce our EPS estimate by 26.3%/11.7% for FY21/FY22 to factor COVID-
19-led weakness in the Prescription and Vaccination segments. We continue
to value GLXO at 37x 12M forward earnings (25% discount to its three-year
average) to arrive at TP of INR1,355. Maintain Neutral.
GSK Pharma revenues were down 17.7% to INR6.5b (v/s est. of INR7.8b).
GM expanded 230bp YoY to 60.3%, led by a better product mix.
However, the EBITDA margin contracted 340bp YoY to 17.6% on higher
employee costs / other expenditure (+530bp/+40bp YoY as a percentage of
sales), offsetting the benefit of better GM.
EBITDA declined by 31% YoY to INR1.1b (v/s est. of INR1.7b).
Adjusting for interest on income tax refund in other income, PAT was down
33% YoY to INR787m (our estimate: INR1.3b).
GLXO’s top two therapies (contributing ~40% to overall sales), Anti-Infective
and Vaccine, saw decline of ~14% and ~28% YoY, respectively, dragging
down sales growth for the quarter.
Particularly, Augmentin/Ceftum (top Anti-Infective brands) declined 6%/16%
YoY for the quarter.
The deferment of vaccination on account of COVID-19 led 14% YoY decline
in Synflorix sales for the quarter.
On a 12M basis, GLAXO took a price hike of 6.7%, offset (to some extent) by
flat new launches and volume decline of 3.9% on a YoY basis.
With the focus on key brands, meaningful (290bp) improvement was
witnessed in the EBITDA margin over FY18–20. However, the benefit of a
superior margin profile is expected to be offset by muted revenue growth
(led by slowdown due to COVID-19) and reduced operating leverage.
Accordingly, we reduce our EPS estimate by 26.3%/11.7% for FY21/FY22 to
factor COVID-19-led challenges, and expect a 10% earnings CAGR over FY20–
22.
We continue to value GLXO at 37x 12M forward earnings to arrive at TP of
INR1,355.
We maintain
Neutral
as the valuation adequately factors the upside.
Lower revenue, reduced operating leverage result in earnings decline
Financials & valuations (INR b)
Y/E MARCH
2020 2021E 2022E
32.2 31.0 34.0
Sales
6.6
6.5
7.4
EBITDA
4.8
4.6
5.7
Adj. PAT
EBIT Margin (%)
17.8 18.4 20.1
28.2 26.9 33.9
Cons. Adj. EPS (INR)
14.6 -4.5 26.0
EPS Gr. (%)
107.5 113.3 124.2
BV/Sh. (INR)
Ratios
Net D:E
-0.6 -0.5 -0.4
26.2 23.8 27.3
RoE (%)
24.3 24.7 28.9
RoCE (%)
Payout (%)
85.4 89.4 71.0
Valuations
52.9 55.3 43.9
P/E (x)
36.8 37.6 32.9
EV/EBITDA (x)
1.3
1.3
1.3
Div. Yield (%)
FCF Yield (%)
1.1
1.0
1.6
EV/Sales (x)
7.5
7.9
7.1
Key highlights
Valuation and view
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
75.0
75.0
75.0
12.1
11.4
11.1
0.2
0.3
1.4
12.7
13.3
12.5
FII Includes depository receipts
Research Analyst: Tushar Manudhane
(Tushar.Manudhane@motilaloswal.com); +91 22 5036 2498
Hitakshi Chandrani
(Hitakshi.Chandrani@MotilalOswal.com) /
Bharat Hegde
(Bharat.Hegde@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
GSK Pharma
Quarterly Performance (Consolidated)
Y/E March
(Standalone)
1Q
Net Sales
7,880
YoY Change (%)
7.1
Total Expenditure
6,227
EBITDA
1,653
YoY Change (%)
21.9
Margins (%)
21.0
Depreciation
191
EBIT
1,462
YoY Change (%)
17.7
Margins (%)
18.6
Interest
9
Other Income
308
PBT before EO Expense
1,761
Tax
626
Rate (%)
35.5
Adjusted PAT
1,173
YoY Change (%)
27.0
Margins (%)
14.9
One-off Expense/(Income)
38
Reported PAT
1,135
(INR m)
Chg.
1QE
(%)
7,801
-16.9
-1.0
6,124
1,677
-32.0
1
21.5
150
1,527
4
19.6
20
165
1,672
405
24.2
1,268
-37.9
8.1
16.2
0
1,268
-12.7
FY20
2Q
3Q
8,820 7,786
8.0
-5.7
6,880 6,542
1,940 1,244
17.5
-9.3
22.0
16.0
227
183
1,713 1,061
11.5
-15.2
19.4
13.6
9
30
159
165
1,863 1,196
457
268
24.5
22.4
1,406
927
24.9
9.3
15.9
11.9
-3,622 7,539
5,028 -6,612
4Q
7,758
3.3
6,022
1,736
6.5
22.4
226
1,510
1.2
19.5
15
158
1,653
385
23.3
1,269
0.1
16.4
-113
1,382
1Q
6,486
-17.7
5,345
1,141
-31.0
17.6
218
923
-36.9
14.2
11
152
1,065
278
26.1
787
-32.9
12.1
-320
1,107
FY21E
2QE
3QE
7,850 8,097
-11.0
4.0
6,264 6,332
1,586 1,765
-18.3
41.9
20.2
21.8
190
180
1,396 1,585
-18.5
49.5
17.8
19.6
20
22
109
140
1,485 1,703
380
450
25.6
26.4
1,105 1,254
-21.4
35.2
14.1
15.5
0
0
1,105 1,254
FY20
4QE
8,521
9.8
6,543
1,978
14.0
23.2
182
1,796
19.0
21.1
32
172
1,935
519
26.8
1,416
11.6
16.6
0
1,416
32,244
3.1
25,671
6,573
9.4
20.4
827
5,746
4.1
17.8
63
790
6,472
1,698
18.9
4,775
14.6
14.8
3,843
932
FY21E
30,954
-4.0
24,485
6,469
-1.6
20.9
770
5,700
-0.8
18.4
85
573
6,188
1,627
26.3
4,561
-4.5
14.7
-320
4,881
Key performance Indicators (Consolidated)
Y/E March
1Q
Cost Break-up
RM Cost (% of Sales)
42.0
Staff Cost (% of Sales)
18.1
Other Cost (% of Sales)
18.9
Gross Margins(%)
58.0
EBITDA Margins(%)
21.0
EBIT Margins(%)
18.6
FY20
2Q
41.9
16.7
19.3
58.1
22.0
19.4
3Q
42.1
21.4
20.5
57.9
16.0
13.6
4Q
36.0
22.1
19.5
64.0
22.4
19.5
1Q
39.7
23.4
19.3
60.3
17.6
14.2
FY21E
2QE
39.5
19.5
20.8
60.5
20.2
17.8
FY20
3QE
39.2
19.0
20.0
60.8
21.8
19.6
4QE
39.3
18.4
19.1
60.7
23.2
21.1
40.6
19.5
19.6
59.4
20.4
17.8
FY21E
39.7
23.4
19.3
60.3
20.9
18.4
18 May 2020
2
 Motilal Oswal Financial Services
GSK Pharma
Key exhibits
Exhibit 1: Top 10 Drugs
MAT Jun - 20
Growth (%)
Mkt Share (%) Last 3M
100.0
(15.1)
11.7
(6.0)
7.0
(14.3)
6.5
(7.1)
5.4
7.7
5.3
12.7
5.0
12.6
4.7
(8.1)
4.4
(16.0)
3.0
(16.9)
3.0
34.9
Jun - 20
(5.6)
4.2
14.5
(12.1)
4.4
44.9
17.3
0.3
(10.4)
(21.0)
45.5
GSK Pharma’s secondary
sales declined 15.1%YoY
during the quarter ending
Jun-20(v/s IPM decline of
5.9% of YoY for the
quarter). Top brands like
Betnesol (-16.9%YoY),
Ceftum (-16%YoY), Synflorix
(-14.3%YoY) declined higher
than other brands during
the quarter.
Drug
Total
Augmentin
Synflorix
Calpol
Eltroxin
Betnovate C
Betnovate N
T Bact
Ceftum
Betnesol
Infanrix Hexa
Therapy
Anti-Infectives
Vaccines
Pain / Analgesics
Hormones
Derma
Derma
Derma
Anti-Infectives
Hormones
Vaccines
Value
(INR m)
39160
4595
2756
2546
2111
2091
1970
1858
1705
1180
1158
Growth (%)
3.1
14.9
5.4
21.2
14.0
2.6
(1.5)
24.2
12.0
5.0
51.5
*3M: Apr 2020- Jun 2020
Source: AIOCD, MOFSL
Exhibit 2: Therapy Mix (%)
Total
Derma
Anti-Infectives
Vaccines
Pain / Analgesics
Hormones
Vitamins / Minerals / Nutrients
Share
100.0
24.2
23.2
16.9
9.4
8.4
5.8
MAT Growth (%)
3.1
7.8
10.8
(2.6)
18.5
8.7
3.3
3M*
(15.1)
(0.9)
(14.3)
(28.3)
(1.6)
(1.7)
(3.7)
Jun - 20
(5.6)
12.6
(5.7)
(8.9)
(2.0)
(5.3)
3.8
Source: AIOCD, MOFSL
Decline in sales was across
therapies with Anti-
Infectives (-14.3%YoY) and
Vaccines (-28.3%YoY) being
the major drags for the
quarter.
Exhibit 3: Brand-wise growth distribution
% of sales
Total
Top 10 Brands
11 to 25 Brands
26 to 50 Brands
Above 50 Brands
100.0
56.1
21.9
13.8
8.2
MAT
Growth (%)
3.1
12.6
(2.3)
5.9
(30.2)
Growth
Contribution (%)
100.0
208.8
(17.0)
25.4
(117.1)
Source: AIOCD, MOFSL
Price grew by 6.7% YoY,
while volume decline
continues to 3.9% YoY on a
MAT basis in Jun’20.
Exhibit 4: Acute v/s Chronic (MAT growth)
MATVALUE Jun 20
3.3
MATVALUE GR Jun 20
Exhibit 5: Growth Distribution (%)(MAT Jun’20)
6.7
1.8
34.2
5.0
-3.9
0.3
ACUTE
CHRONIC
Source: AIOCD, MOFSL
Vol GR
Price GR
NP GR
Source: AIOCD, MOFSL
29 July 2020
3
 Motilal Oswal Financial Services
GSK Pharma
Valuation and view
Continued headwinds on revenue growth; Superior product portfolio a
saving grace
Over FY16–20, while GLXO was re-working to rationalize the portfolio and prioritize
high-value products, it faced temporary hiccups due to the implementation of
GST/demonetization. As EBITDA margins improved in 1HFY20, the impurity issue at
the industry level led GLXO to voluntarily stop selling its Zantac brand, impacting
revenue growth for GLXO. The recent COVID-19-led disruption has intensified
revenue decline and considerably reduced operating leverage. As the nationwide
lockdown is relaxed in a phased manner, GLXO is adapting to new ways of working,
led by digital marketing, social distancing, and good hygiene practices when
communicating with doctors. Considering these factors, we expect a 3%/6%
revenue/EBITDA CAGR over FY20–22.
Valuation and view:
We expect a 10% earnings CAGR over FY20–22, supported by focused promotional
activities for key brands, new launches, increased efficiencies in the distribution
channel, and a reduced tax rate.
We lower our EPS estimate by 26.3%/11.7% for FY21/FY22 to factor COVID-19-led
challenges. Accordingly, we arrive at TP of INR1,355, valuing GLXO at 37x 12M
forward earnings. We maintain
Neutral
as the valuation adequately factors the
upside.
Exhibit 6: P/E chart
P/E (x)
Min (x)
120.0
100.0
80.0
60.0
40.0
20.0
0.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 7: P/B chart
P/B (x)
Min (x)
20.0
Avg (x)
+1SD
Max (x)
-1SD
110.6
71.6
51.1
30.6
24.5
16.0
15.0
10.0
13.1
11.2
9.3
8.2
12.0
42.9
5.0
0.0
Source: MOFSL, Company, Bloomberg
Source: MOFSL, Company, Bloomberg
29 July 2020
4
 Motilal Oswal Financial Services
GSK Pharma
Story in charts
Exhibit 8: Revenues declined ~18% YoY
Net Sales (INR b)
21.2
17.3
7
-2.4
7.4
8.2
8.3
0.3
-6
7.5
7.9
8.8
7.8
7.8
-18
1.4
1.7
1.4
1.6
1.7
1.9
1.2
1.7
1.1
8
3
6.5
YoY growth (%)
18.4
Exhibit 9: EBITDA margin contracted ~340bps YoY
EBITDA (INR b)
20.2
16.6
21.7
EBITDA margins (%)
22.4
21.0 22.0
16.0
17.6
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 10: Expect revenue CAGR of ~3% over FY20–22E
Total sales (INR b)
YoY Growth (%)
10.0
6.8
3.9
4.7
-1.1
-4.0
32.7
FY15
27.4
FY16
29.3
FY17
29.0
FY18
31.3
FY19
32.2
FY20
34.0
FY21E FY22E
Exhibit 11: Profitability to improve gradually during FY20-22
EBITDA (INR b)
19.2
EBITDA Margin (%)
20.4
20.9
21.7
8.0
3.1
31.0
18.4
16.5
11.8
17.5
6.0
FY15
4.5
FY16
3.5
FY17
5.1
FY18
6.0
FY19
6.6
FY20
6.5
7.4
FY21E FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 12: Earnings to exhibit ~10% CAGR over FY20–22E
EPS (INR)
31.2
22.1
17.2
24.6
19.7
33.9
28.2
26.9
Exhibit 13: Expect cash to be distributed to stakeholders
Cash & cash equivalents (INR b)
19.1
13.9
9.3
13.0
11.7
10.8
9.3
9.3
FY15
Source: Company, MOFSL
FY16
FY17
FY18
FY19
FY20
FY21E FY22E
Source: Company, MOFSL
29 July 2020
5
 Motilal Oswal Financial Services
GSK Pharma
Financials and valuations
Income Statement
Y/E December
Net Sales
Change (%)
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Int. and Fin. Charges
Other Income - Rec.
PBT & EO Expense
Tax
Tax Rate (%)
Adj PAT
Change (%)
One-off Expense (net of tax)
Reported PAT
Change (%)
Margin (%)
Balance Sheet
Y/E December
Equity Share Capital
Reserves
Capital Reserve
Net Worth
Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Account Receivables
Cash & Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Deferred Tax Assets
Appl. of Funds
FY15
32,725
3.9
6,009
-3.1
18.4
254
5,756
0
2,320
8,076
2,793
34.6
5,283
11.1
519
5,802
-7.5
17.7
FY16
27,411
4.7
4,516
-6.1
16.5
248
4,269
0
1,500
5,769
2,026
35.1
3,742
-29.2
-135
3,607
-22.3
13.2
FY17
29,265
6.8
3,455
-23.5
11.8
264
3,192
0
1,463
4,655
1,744
37.5
2,911
-22.2
457
3,368
-22.2
11.5
FY18
28,957
-1.1
5,058
46.4
17.5
380
4,678
2
545
5,222
1,893
36.2
3,329
14.4
178
3,507
14.4
12.1
FY19
31,281
8.0
6,008
18.8
19.2
486
5,522
6
1,023
6,540
2,373
36.3
4,167
25.2
-21
4,454
25.2
14.2
FY20
32,244
3.1
6,573
9.4
20.4
827
5,746
63
790
6,472
1,698
26.2
4,775
14.6
-3,843
932
-79.1
2.9
FY21E
30,954
-4.0
6,469
-1.6
20.9
770
5,700
85
573
6,188
1,627
26.3
4,561
-4.5
320
4,881
423.8
15.8
(INR m)
FY22E
34,049
10.0
7,384
14.1
21.7
526
6,858
95
900
7,663
1,916
25.0
5,747
26.0
0
5,747
17.7
16.9
(INR m)
FY22E
1,694
19,330
17
21,041
0
21,042
12,190
3,400
8,790
-299
15
23,588
6,129
1,702
9,287
6,469
12,157
6,469
5,687
11,431
1105
21,042
FY15
847
17,426
17
18,290
26
18,316
3,212
1,981
1,231
1,152
1
28,942
3,756
1,003
19,106
5,077
13,841
4,434
9,406
15,101
831
18,316
FY16
847
20,969
17
21,832
16
21,848
2,284
243
2,040
2,677
1
24,820
5,259
1,266
13,919
4,376
8,700
5,393
3,307
16,119
1011
21,848
FY17
847
19,204
17
20,069
10
20,078
3,313
464
2,850
5,732
1
20,540
4,258
1,708
9,321
5,253
9,960
6,750
3,210
10,580
916
20,078
FY18
847
19,709
17
20,573
6
20,579
4,020
792
3,228
9,229
18
25,962
5,002
1,470
12,964
6,527
18,896
15,046
3,850
7,066
1037
20,579
FY19
1,694
19,687
17
21,398
2
21,400
5,590
1,278
4,300
10,026
17
24,148
4,865
1,205
11,714
6,364
17,713
13,642
4,071
6,435
622
21,400
FY20
1,694
16,495
17
18,206
0
18,206
10,190
2,105
7,566
1,201
15
21,469
4,830
998
10,832
4,808
13,149
7,763
5,386
8,319
1105
18,206
FY21E
1,694
17,480
17
19,191
0
19,191
11,190
2,874
8,316
451
15
21,927
5,262
1,548
9,236
5,881
12,623
7,453
5,170
9,304
1105
19,191
29 July 2020
6
 Motilal Oswal Financial Services
GSK Pharma
Financials and valuations
Ratios
Y/E December
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Fixed Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Creditor days
Leverage Ratio
Debt/Equity
Cash Flow Statement
Y/E December
Oper. Profit/(Loss) bef. Tax
Interest/Div. Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO expense
CF frm Op. incl EO exp.
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Change in Equity capital
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
FY15
31.2
32.7
108.0
62.5
120.6
59.7
57.0
13.8
8.9
48.5
4.2
23.1
21.9
23.5
14
52
49
-1.0
FY16
22.1
23.6
128.9
50.0
136.2
67.5
63.3
11.6
8.7
52.8
3.4
17.1
18.6
16.8
17
70
72
-0.6
FY17
17.2
18.7
118.5
30.0
175.1
86.7
79.5
12.6
8.3
70.4
2.0
14.5
13.9
12.0
21
53
84
-0.5
FY18
19.7
21.9
121.4
35.0
91.9
75.8
68.0
12.3
8.3
47.3
2.3
16.2
16.4
9.5
19
63
190
-0.6
FY19
24.6
27.5
126.3
20.0
97.9
60.6
54.2
11.8
7.7
40.1
1.3
19.5
19.9
8.3
14
57
159
-0.5
FY20
28.2
33.1
107.5
20.0
85.4
52.9
45.1
13.9
7.5
36.8
1.3
26.2
24.3
5.4
11
55
88
-0.6
FY21E
26.9
31.5
113.3
20.0
89.4
55.3
47.4
13.2
7.9
37.6
1.3
23.8
24.7
3.9
18
62
88
-0.5
FY22E
33.9
37.0
124.2
20.0
71.0
43.9
40.2
12.0
7.1
32.9
1.3
27.3
28.9
4.0
18
66
69
-0.4
(INR m)
FY22E
7,384
900
-1,916
-2,076
4,292
0
4,292
-250
4,042
0
-250
0
0
-95
-4,078
-3,991
51
9,236
9,287
FY15
6,528
2,320
-2,703
410
6,555
519
6,036
-603
5,952
576
-27
0
-10
0
-6,374
-7,175
-1,166
20,271
19,106
FY16
4,381
1,500
-2,207
-6,205
-2,531
-135
-2,395
-596
-3,127
0
-596
0
-10
0
-5,097
-210
-3,201
19,106
15,905
FY17
3,912
1,463
-1,649
942
4,669
457
4,211
-4,085
583
0
-4,085
0
-6
0
-5,097
-4,681
-4,555
13,919
9,364
FY18
5,236
545
-2,013
7,156
10,925
178
10,747
-4,255
6,670
-18
-4,273
0
-4
-2
-3,058
-2,831
3,643
9,321
12,964
FY19
6,008
1,023
-1,958
-619
4,455
0
4,455
-2,367
2,087
1
-2,366
847
-4
-6
-4,080
-3,352
-1,263
12,964
11,714
FY20
2,730
790
-2,180
-2,766
-1,427
0
-1,427
4,225
2,798
2
4,227
0
-2
-63
-4,078
-4,189
-1,389
11,714
10,332
FY21E
6,469
573
-1,627
-2,581
2,835
0
2,835
-250
2,585
0
-250
0
0
-285
-4,078
-3,981
-1,396
10,832
9,236
29 July 2020
7
 Motilal Oswal Financial Services
GSK Pharma
NOTES
29 July 2020
8
 Motilal Oswal Financial Services
GSK Pharma
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
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though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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Research Analyst views on Subject Company may vary based on Fundamental
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located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
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dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
29 July 2020
9
 Motilal Oswal Financial Services
GSK Pharma
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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customers by virtue of their receiving this report.
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
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The person accessing this information specifically agrees to exempt MOFSL or any of its
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expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
29 July 2020
10