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GlaxoSmithKline share price today jumped 20%. The stock was trading at ₹2,421.30 per share on the Bombay Stock Exchange (BSE) as of 10 am on Feb 17, 2025. An impressive Q3 financial performance for FY25 drives GSK stock gain.
The surge reflects a stunning five-fold jump in the company's net profit for the quarter. This rise is backed by robust operational performance and the lack of one-time charges that hurt last year's earnings.
After the announcement of these robust financial numbers, GlaxoSmithKline's stock price witnessed a stunning rally. Yet, it is still 21.5% short of its 52-week high of ₹3,087.95, which was seen in August 2024. Even so, the stock has risen more than 32% from its 52-week low of ₹1,825.05, which was seen in April 2024.
Though the recent rally is stunning, GlaxoSmithKline's stock price has been volatile over the last year. The stock has declined more than 10% in the past 12 months, compared to the Sensex's 4.4 percent rise over the same period. This loss followed five straight months of losses, from September 2024 to January 2025. In these months, the stock experienced a dramatic fall of 12% during January alone. It experienced smaller losses in the preceding months, 8% in December, 9.5% in November, 1.4% in October, and 0.26% in September.
Nevertheless, February 2025 has witnessed a strong comeback, with the shares rising by 22% up to now. The sharp rise in stock price indicates investor optimism for the company's robust Q3 results and its future possibility of consistent growth.
Market Capitalization and Outlook
The market capitalization of GlaxoSmithKline Pharmaceuticals is ₹40,843.79 crore. With its recent financial performance and strategic plans in core therapeutic areas, the company is set to grow further in the next few quarters.
Investors and industry experts will keenly observe if GlaxoSmithKline can sustain its growth pace, particularly following its Q3FY25 performance. The presence of no one-time costs, healthy revenue growth, and an increasing product basket give a bullish view of the pharma giant.
GlaxoSmithKline Pharmaceuticals reported a strong 400% growth in its consolidated net profit for Q3FY25. The profit stood at ₹230 crore from ₹46 crore in the corresponding period of FY24. The revenue of the company also reflected strong growth, increasing 18% year-on-year (YoY) to ₹949.42 crore from ₹805.26 crore in Q3FY24.
A main driver of this increase in net profit was the lack of the exceptional one-time charge of ₹163 crore in the prior year. This charge had been attributable to a voluntary retirement scheme (VRS) introduced in FY24, which had adversely affected earnings then.
The encouraging findings are a demonstration of the company's continued strategic efforts to strengthen its market position further and extend access to vaccines and medicines. Bhushan Akshikar, MD of GSK Pharmaceuticals, in a statement, highlighted the company's efforts at building its core brands. He said that the efforts are fueling digital growth through innovative marketing strategies.
“Our robust third-quarter performance is a testament to our unrelenting focus on bringing innovative healthcare solutions to patients in India. By doubling down on our core brands and driving digital transformation through cutting-edge go-to-market approaches, we are continuing to grow our reach and deepen our market position," Akshikar said.
GlaxoSmithKline's lead drugs, including Augmentin, Ceftum, and T-Bact, have registered significant gains in market share in the general medicines category. The company's respiratory franchise, with products like Nucala and Trelegy, also recorded significant growth. Thus, further increasing patient access in India.
In the vaccines business, GSK retained leadership in the self-pay private market for pediatric vaccines. In addition, its adult vaccine business, especially with Shingrix (Herpes Zoster Vaccine, recombinant, adjuvanted), continued to build pace. This is in line with GSK's approach to fuel the growth of adult immunization in India.
GlaxoSmithKline's share price is going through a surge at the moment. Analysts have mized sentiments regarding the stock’s current rating, with 50% giving a ‘Buy’ rating while the other 50% recommend a ‘Hold’ rating. However, its future performance will depend on consistent growth, efficient market strategies, and ongoing product portfolio expansion.
