Valuation hurdle likely to keep GSK Pharma shares under pressure

Corporate logo of pharmaceutical company GlaxoSmithKline is on display at their Stevenage branch

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