Valuations hurdle likely to keep GSK Pharma stock under pressure

Even as the top pharmaceutical peers delivered a double digit growth in the December quarter, sales for GSK Pharma at Rs 805 crore was flat

The stock of GlaxoSmithKline Pharmaceuticals (GSK Pharma) is down 14 per cent since February, underperforming the BSE Healthcare index, which is up about 5.7 per cent during this period.

From its highs in early February, the Indian unit of the pharma multinational has lost a fifth of its market capitalisation (mcap).

While a weak December quarter performance and downgrades have led to muted returns, most brokerages have a neutral stance, given the valuation concerns.

Even as top pharmaceutical peers delivered double-digit growth in the December quarter, sales of GSK Pharma, at Rs 805 crore, were flat over the year-ago quarter.