GlaxoSmithKline Pharmaceuticals India (GSK) ia a leading and stronger player in Indian pharmaceutical industry.
GSK’s average RoE has been 30% over the past five years and its operating margin is a fantastic 38%. Five years ago, its stock was trading at around Rs600. It is now approaching Rs1,600.
Combined with robust dividend payouts, the GSK stock has fetched total returns of 194% for shareholders over the past five years.
The best time to buy stocks of GSK is when it gets valued at 4.2 times sales and 11 times operating profit. Watchout for any corrections in stock markets and this could be a pharma stock to buy in your portfolio for steady returns as long term investment.
