GLAND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | GLAND | Market Cap | 28,846 Cr. | Current Price | 1,751 ₹ | High / Low | 2,131 ₹ |
| Stock P/E | 24.3 | Book Value | 610 ₹ | Dividend Yield | 1.03 % | ROCE | 15.8 % |
| ROE | 11.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,741 ₹ | DMA 200 | 1,766 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.37 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 302 Cr. |
| RSI | 51.2 | MACD | 11.6 | Volume | 2,25,725 | Avg Vol 1Wk | 1,16,922 |
| Low price | 1,382 ₹ | High price | 2,131 ₹ | PEG Ratio | -7.08 | Debt to equity | 0.00 |
| 52w Index | 49.2 % | Qtr Profit Var | 10.4 % | EPS | 71.0 ₹ | Industry PE | 30.1 |
📊 Financials: GLAND shows moderate fundamentals with ROE at 11.6% and ROCE at 15.8%, reflecting average efficiency. Debt-free balance sheet ensures financial stability. Quarterly PAT improved to ₹326 Cr. from ₹302 Cr., indicating steady growth. EPS at ₹71.0 supports earnings consistency.
💹 Valuation: Current P/E of 24.3 is below the industry average of 30.1, suggesting relative undervaluation. However, PEG ratio of -7.08 highlights weak growth prospects. Strong book value of ₹610 vs. CMP ₹1,751 provides valuation support.
🏗️ Business Model: GLAND operates in pharmaceuticals, focusing on injectables and contract manufacturing. Competitive advantage lies in specialized production capabilities, regulatory approvals, and global partnerships.
📈 Entry Zone: Accumulation near ₹1,730–₹1,750 (close to 50 DMA support) is favorable. RSI at 51.2 indicates neutral momentum, while MACD at 11.6 shows mild bullishness. Exit strategy near ₹1,850–₹1,900 with stop-loss around ₹1,700.
🕰️ Long-Term Holding: While fundamentals are stable, growth concerns limit upside. Suitable for cautious long-term investors seeking defensive exposure in pharma, but not ideal for aggressive growth portfolios.
Positive
- Debt-free balance sheet
- Strong book value (₹610) vs. CMP
- Consistent quarterly PAT growth (+10.4%)
- Dividend yield of 1.03% adds income stability
Limitation
- Low ROE (11.6%) and ROCE (15.8%)
- Negative PEG ratio (-7.08) signals weak growth outlook
- FII holding decreased (-0.29%)
- Moderate 52-week performance (49.2%)
Company Negative News
- No major negative news reported; investor sentiment cautious due to FII outflow
Company Positive News
- Quarterly profit growth (+10.4%)
- DII holdings increased (+0.37%), showing domestic support
Industry
- Pharma industry P/E at 30.1 indicates premium valuations
- Sector benefits from global demand and regulatory approvals
- Defensive sector with long-term visibility
Conclusion
GLAND offers stability with a debt-free balance sheet and consistent profits, but limited growth prospects reflected in its negative PEG ratio. Entry near ₹1,730–₹1,750 is favorable, with profit booking advised near ₹1,850–₹1,900. Best suited for cautious investors seeking defensive pharma exposure rather than aggressive growth opportunities.