CMP: 2183

Glaxosmithkline Pharmaceuticals Ltd. manufactures and distributes a wide variety of pharmaceutical drugs, veterinary products and laboratory chemicals. The Company's products include "Phexin" capsules, "Betnesol" tablets and injections, "Becoride" asthma treatment, "Betnovate" ointment, "Cetzine" antihistamine, "Zucox" and "Rizap" anti-tuberculosis products.

Glaxosmithkline Pharmaceuticals is a safe buy, but with limited upside and downside. It is currently trading at a P/E of 43 with dividend yields of well over 2% in the last 12 months. It runs at zero debt with nearly 2000 Crores cash in hand. Revenues have risen from 1538 Crores to 2146 Crores in the last 5 years. Profits have been static and stayed above 500 Crores in the last 5 years. NPM has dipped from 35% to 24% over the last 5 years. Buy and book profits when Nifty peaks.