GLAND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

📊 Financial Strength & Profitability

EPS (₹42.4) and PAT Qtr (₹187 Cr vs ₹205 Cr): Slight dip in earnings; margin pressure or seasonal softness may be factors.

ROCE (11.9%) & ROE (7.82%): Fair—but below industry leaders. Indicates capital isn't being deployed at peak efficiency.

Debt-to-Equity (0.03): Impressive! Nearly debt-free, offering flexibility for R&D and capex.

Dividend Yield (0.86%): Modest—signals preference toward reinvestment for growth.

💰 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 49.6 Richly valued vs. industry PE (34.0)

P/B Ratio ~3.79 Acceptable given pharma assets and quality balance sheet

PEG Ratio -2.97 Negative due to declining growth trajectory—concerning

Intrinsic Value — Estimated ~₹1,900–₹2,000 — just below current price

📉 Current valuation suggests the market has priced in optimistic future growth. Without visible acceleration, downside risk emerges.

🧬 Business Model & Strategic Edge

Segment: Injectable generics, contract development, biosimilars.

Strengths

Specialized sterile manufacturing facilities catering to regulated markets (US, EU).

Consistent regulatory compliance and export orientation.

Risks

Pricing erosion in generics.

Margin compression from global competition.

Slight DII exit (-0.41%) may reflect valuation discomfort despite rising FII interest (+0.49%).

📈 Technical Setup & Entry Range

Current Price: ₹2,102

DMA 50 / 200: ₹1,817 / ₹1,699 — price well above averages

RSI (76.4): Overbought — indicates short-term overheating

MACD (81.3): Sharp bullish trend

Volume: Mild uptick — some institutional accumulation possible

🛒 Suggested Entry Zone: ₹1,850–₹1,950 Allow RSI to cool near 60 and monitor MACD tapering before entering. Avoid momentum chase without growth confirmation.

🧭 Long-Term Holding Guidance

GLAND offers global exposure and quality operations. For long-term conviction

Watch return ratios improve >15% (ROE/ROCE)

Earnings growth revival, especially from biosimilar launches

Strong ANDA pipeline execution and USFDA clearances

With a near-debt-free balance sheet and export-led model, GLAND can be a stealth compounder—but only if earnings re-accelerate meaningfully.

Need help benchmarking it against Divi’s, Biocon, or Laurus for a pharma stack pick? I can lay out a comparative radar view that'll make your decisions surgical. 💊💼

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