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GLAND - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.9

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 3.9

Stock Code GLAND Market Cap 27,493 Cr. Current Price 1,670 ₹ High / Low 2,131 ₹
Stock P/E 23.2 Book Value 610 ₹ Dividend Yield 1.08 % ROCE 15.8 %
ROE 11.6 % Face Value 1.00 ₹ DMA 50 1,748 ₹ DMA 200 1,778 ₹
Chg in FII Hold -0.32 % Chg in DII Hold 0.36 % PAT Qtr 326 Cr. PAT Prev Qtr 302 Cr.
RSI 40.2 MACD -44.1 Volume 2,24,824 Avg Vol 1Wk 1,71,166
Low price 1,200 ₹ High price 2,131 ₹ PEG Ratio -6.75 Debt to equity 0.00
52w Index 50.5 % Qtr Profit Var 10.4 % EPS 71.0 ₹ Industry PE 27.6

📊 Core Financials

  • Quarterly PAT increased from ₹302 Cr. to ₹326 Cr., showing steady growth.
  • ROCE at 15.8% and ROE at 11.6% → moderate efficiency compared to peers.
  • Debt-to-equity ratio of 0.00 → completely debt-free.
  • Cash flows supported by consistent pharmaceutical demand.

💹 Valuation Indicators

  • P/E Ratio: 23.2 vs Industry PE of 27.6 → slightly undervalued.
  • P/B Ratio: ~2.7x (₹1670 / ₹610) → reasonable valuation.
  • PEG Ratio: -6.75 → negative, indicating weak growth expectations.
  • Intrinsic Value: Current price near fair value, with limited upside.

🏢 Business Model & Competitive Advantage

  • Pharmaceutical manufacturing with focus on injectables and specialty drugs.
  • Strong export presence provides diversification.
  • Moderate efficiency metrics compared to industry leaders.

📈 Technical & Entry Zone

  • Current Price: ₹1670, below 50 DMA (₹1748) and 200 DMA (₹1778).
  • RSI: 40.2 → approaching oversold zone.
  • MACD: -44.1 → bearish momentum.
  • Entry Zone: Attractive accumulation between ₹1550–₹1650.
  • Long-Term Holding: Suitable for cautious investors with 3–5 year horizon.

✅ Positive

  • Debt-free balance sheet.
  • Steady quarterly profit growth of 10.4%.
  • Reasonable P/E compared to industry average.

⚠️ Limitation

  • Moderate ROE and ROCE compared to peers.
  • Negative PEG ratio indicates weak growth outlook.

📉 Company Negative News

  • Decline in FII holdings (-0.32%).
  • Stock corrected from 52-week high of ₹2131.

📈 Company Positive News

  • DII holdings increased by 0.36%, showing institutional confidence.
  • Quarterly PAT growth of 10.4% supports stability.

🏭 Industry

  • Pharmaceutical sector supported by global demand and healthcare expansion.
  • Industry PE at 27.6 indicates investor optimism.

🔎 Conclusion

GLAND is a debt-free pharmaceutical company with steady profit growth and reasonable valuation.

While efficiency metrics are moderate and growth outlook is weak (negative PEG), its stability and sector demand make it suitable for cautious long-term investors.

Best accumulated around ₹1550–₹1650 for a 3–5 year horizon.

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