GSK Consumer spurts on buyback news

DALAL STREET SPIKES

Mid-cap company, GlaxoSmithkline Consumer Healthcare was in limelight gaining 13.32 per cent after the company said it would consider a share buyback.

The stock was among the top performer among the mid-cap companies. It closed the day at Rs 323.30 on the BSE compared with its previous close of Rs 285.30. More than 1.17 lakh shares changed hands.

Analysts said, a buyback proposal is an indication that the stock is underpirced at current levels. Rally in mid-cap stocks in the last three months has rubbed on to GSK Consumer stock as well. In a past three months from Rs 210 in August, the stock has appreciated 53.8 per cent to Thursday's close of Rs 323.30.

GSK Consumer has a strong presence in malted food drinks segment, having nearly 65 per cent market share in the Rs 1,300-crore industry. Its major brand - Horlicks - contributes nearly 80 per cent to its revenues.