GLAXO - Fundamental Analysis

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

Fundamental Rating: 4.2

📊 Core Financials & Profitability

EPS (₹54.8) and PAT Growth (+14%): Healthy profit momentum, with strong QoQ growth.

ROCE (63.2%) & ROE (46.9%): Stellar—among the best in the industry. Indicates exceptional capital deployment and shareholder return.

Debt-to-Equity (0.01): Virtually debt-free—excellent for stability and future scalability.

Dividend Yield (1.33%): Reasonable, supports investor income while retaining enough for growth.

💰 Valuation Checkpoint

Metric Value Meaning

P/E Ratio 61.0 Richly valued vs. industry average (34.0)

P/B Ratio ~27.4 Very high—likely pricing in strong brand premium

PEG Ratio -3.11 Concerning—signals deceleration or unsustainable growth

Intrinsic Value — Estimated ~₹2,750–₹2,900 — slightly below market price

⚠️ Overvaluation risk present. Unless growth sustains this momentum, price may revert closer to fundamentals.

🧬 Business Model & Competitive Moat

Core Domain: Pharmaceuticals with a consumer health tilt—often includes OTC, vaccines, and prescription drugs.

Strengths

Legacy presence in India with strong brand recall.

Operational efficiency reflected in high return metrics.

Risks

Generic competition and pricing pressure.

Negative PEG and very high valuation metrics indicate the market has factored in a perfect execution scenario.

📈 Technical Setup & Entry Zone

Current Price: ₹3,150

DMA 50 / 200: ₹3,158 / ₹2,806

RSI (46.0): Neutral—neither overbought nor oversold

MACD (-33.0): Bearish momentum setting in

Volume Trends: Pickup in interest, especially from FII (+0.37%)

🛒 Suggested Entry Zone: ₹2,850–₹2,950 Let technical indicators settle further. A pullback could offer a lower-risk entry aligned with intrinsic estimates.

🧭 Long-Term Holding Guidance

With superior capital efficiency, low debt, and a trusted portfolio, GLAXO fits a defensive pharma allocation. If future earnings stay strong

Hold for steady compounding

Monitor valuation closely—avoid adding at stretched multiples

Watch for product innovation, regulatory clarity, and margin trends

Long-term, it’s a fortress-like stock—but timing matters. Fortresses are great, unless you buy them at a skyscraper price.

Want to stack this against Sun Pharma or Pfizer India for a sharper edge? I can serve up a clinical comparison in seconds. 💊📈

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