⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GLAND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | GLAND | Market Cap | 30,238 Cr. | Current Price | 1,834 ₹ | High / Low | 2,131 ₹ |
| Stock P/E | 25.5 | Book Value | 610 ₹ | Dividend Yield | 0.98 % | ROCE | 15.8 % |
| ROE | 11.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,742 ₹ | DMA 200 | 1,779 ₹ |
| Chg in FII Hold | -0.32 % | Chg in DII Hold | 0.36 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 302 Cr. |
| RSI | 65.3 | MACD | 19.6 | Volume | 71,773 | Avg Vol 1Wk | 8,20,575 |
| Low price | 1,200 ₹ | High price | 2,131 ₹ | PEG Ratio | -7.43 | Debt to equity | 0.00 |
| 52w Index | 68.1 % | Qtr Profit Var | 10.4 % | EPS | 71.0 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT increased from 302 Cr. to 326 Cr., showing steady growth with 10.4% YoY profit variation.
- Margins: ROE at 11.6% and ROCE at 15.8% indicate moderate profitability compared to industry leaders.
- Debt Ratios: Debt-to-equity at 0.00 reflects a completely debt-free balance sheet.
- Cash Flows: Stable operating cash flows supported by pharmaceutical exports and contract manufacturing.
- Return Metrics: EPS at 71 ₹ demonstrates consistent earnings power.
💹 Valuation Indicators
- P/E Ratio: 25.5, below industry PE of 29.0, suggesting slight undervaluation.
- P/B Ratio: ~3.0 (Current Price / Book Value), reasonable for pharma sector.
- PEG Ratio: -7.43, distorted due to slower growth expectations, signaling caution.
- Intrinsic Value: Current price (1,834 ₹) is near fair value; upside potential depends on growth revival.
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical manufacturing with focus on injectables and contract development.
- Competitive advantage lies in specialized expertise, global regulatory approvals, and diversified product portfolio.
- Resilient business model with export-driven revenues and partnerships with global pharma companies.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,700 ₹ – 1,780 ₹ (near DMA 200).
- Long-Term Holding: Suitable for long-term investors seeking exposure to pharma exports, though growth momentum needs monitoring.
Positive
- Debt-free balance sheet.
- Reasonable P/E compared to industry average.
- Consistent quarterly profit growth.
- Strong global presence in injectables and contract manufacturing.
Limitation
- Moderate ROE and ROCE compared to peers.
- PEG ratio indicates weak growth outlook.
- Lower trading volumes compared to industry leaders.
Company Negative News
- Reduction in FII holdings (-0.32%) shows cautious foreign investor sentiment.
Company Positive News
- Quarterly PAT growth and improved domestic institutional inflows (+0.36%).
- Strong regulatory approvals and export opportunities.
Industry
- Pharmaceutical sector remains resilient with global demand for generics and injectables.
- Industry PE at 29.0 reflects investor optimism and premium valuations.
Conclusion
- Gland Pharma is a fundamentally stable, debt-free pharma exporter with moderate profitability.
- Valuation is fair, but growth outlook is cautious due to PEG ratio distortion.
- Best suited for long-term investors seeking steady exposure to pharma exports with moderate risk appetite.
Would you like me to also compare Gland Pharma’s valuation and growth metrics against peers like Divi’s Labs or Biocon to highlight relative positioning?