Smithkline Beecham Consumer

Last week's close: Rs 276

Previous week's close: Rs 339.25

This scrip fell by 19 per cent in the last week. This mainly for two moves by the company against it's shareholders.

Firstly, the company decided to pay a five per cent royalty on its Horlicks brand to its parent UK company. Horlick accounts for nearly 75 per cent of the total turnover of the company.

And now, the company has announced to transfer its popular antacid brand, Eno to its 100 per cent subsidiary, Smithkline Beecham Asia. It would be interesting to note that Eno is supposed to account for Rs 30 crore -- or around eight per cent -- of the company's turnover in 1995.

Smithkline Beecham Consumer registered a 35.3 per cent rise in its turnover for the year ended December 1996. Sales turnover increased from Rs.366.89 crore in 1996 compared to Rs.496.57 crore in 1995.

During the year, the company's net profit also increased by 30 per cent to Rs.36.10 crore in 1996 from Rs.36.10 crore in the previous year. Its EPS for the year is Rs.16.5 and is being traded around 17.5 times of its earning.