Valuation hurdle likely to keep GSK Pharma shares under pressure

GlaxoSmithKline Pharmaceuticals (GSK Pharma) shares have fallen 14 percent since February, underperforming the BSE Healthcare index, which has risen about 5 percent over the period. From its peak in early February, the Indian unit of the pharmaceutical multinational has lost a fifth of its market capitalization. While the weak performance in the December quarter and downgrades have led to subdued returns, most brokers have a neutral stance given valuation concerns.

Even as top pharma peers posted double-digit growth in the December quarter, GSK Pharma’s revenue remained flat at Rs 805 crore versus the previous year’s quarter.

First print: April 5, 2024 | 11:50 PM IST