GSK Consumer hits new high, stock surges 27% in a week

GlaxoSmithkline Consumer Healthcare has rallied 7% to Rs 5,114, extending its past four days rally on bourses on back of heavy volumes.

The stock opened at Rs 4,790 and hit new high of Rs 5,180 on NSE. A combined 97,754 shares already changed hands on the counter till noon deals against an average sub 20,000 shares that were traded daily in past two weeks on NSE and BSE.

The stock of GSK Consumer Healthcare, a leader in the worldwide consumer healthcare market, has rallied 27% in past one week compared to 0.78% rise in benchmark Nifty. In past two trading sessions the stock has gained 15% after MSCI has included the company in its index.

After increasing its stake to 72.46% from 43.16% earlier this year, the promoter has begun to look into launching global brands (Lucozade, Ribena) in India. This would drive the growth rates of the Indian business and also expect an increase in sharing of technology and products, says analyst at Anand Rathi Research.

The parent company indicated that GSK-CH’s products are reaching just 70% of the population, raising the possibility of healthy distribution-led growth ahead, he adds.