Glaxosmithkline Pharmaceuticals Ltd.
ISIN: INE159A01016 • Market Cap: ₹51,399 Cr
The 5-Pillar Quality Audit for Glaxosmithkline Pharmaceuticals Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (34.2%), Return on Capital Employed (57.6%), and equity compounding (45.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.6%) and 3Y PAT CAGR (21.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 48.12 vs PEG of 4.58 and Dividend Yield of 1.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 75.0%, backed by 12.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 57.6%)
Glaxosmithkline Pharmaceuticals Ltd. generates exceptional return on capital employed of 57.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 45.7%)
Shareholder equity compounds at a healthy 45.7%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 21.9%)
Net earnings have compounded at 21.9% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 4.6%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking GLAXO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 78/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare GLAXO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Glaxosmithkline Pharmaceuticals Ltd. (GLAXO)Current | 78/100 | ₹51,399 Cr | 48.12 | 57.6% | 0.00 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Glaxosmithkline Pharmaceuticals Ltd.
Q:What is the 5-Pillar Fundamental Score for Glaxosmithkline Pharmaceuticals Ltd. (GLAXO)?
Glaxosmithkline Pharmaceuticals Ltd. has a RupeeTools Fundamental Score of 78/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (99/100), Financial Health (89/100), Growth (64/100), Valuation (48/100), and Ownership Quality (72/100).
Q:Is GLAXO fundamentally strong for long-term investment?
Yes, GLAXO exhibits solid fundamental strength with a 78/100 score, driven by a return on equity of 45.7% and a debt-to-equity ratio of 0.00.
Q:Does GLAXO pass the Coffee Can Investing filter?
No. GLAXO does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GLAXO compare against other Healthcare peers?
Within India's Healthcare sector, GLAXO trades at a P/E of 48.12 and generates an ROCE of 57.6%. Compare its 5-Pillar score of 78/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.