⚠ 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.
GLAXO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | GLAXO | Market Cap | 41,138 Cr. | Current Price | 2,432 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 41.3 | Book Value | 101 ₹ | Dividend Yield | 1.72 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,506 ₹ | DMA 200 | 2,608 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | -0.05 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 253 Cr. |
| RSI | 41.9 | MACD | -23.7 | Volume | 28,349 | Avg Vol 1Wk | 42,840 |
| Low price | 2,220 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.08 | Debt to equity | 0.02 |
| 52w Index | 16.4 % | Qtr Profit Var | 21.3 % | EPS | 58.8 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Quarterly PAT increased from ₹253 Cr. to ₹277 Cr., showing healthy growth.
- ROCE at 62.6% and ROE at 46.4% → exceptional efficiency and profitability.
- Debt-to-equity ratio of 0.02 → virtually debt-free.
- Cash flows supported by strong pharmaceutical demand and brand presence.
💹 Valuation Indicators
- P/E Ratio: 41.3 vs Industry PE of 27.6 → trading at a premium.
- P/B Ratio: ~24x (₹2432 / ₹101) → very high premium valuation.
- PEG Ratio: -2.08 → negative, indicating weak growth expectations.
- Intrinsic Value: Current price above fair value, reflecting brand premium.
🏢 Business Model & Competitive Advantage
- Pharmaceutical company with strong global brand recognition.
- Leadership in healthcare products ensures steady demand.
- High efficiency metrics reflect strong operational execution.
📈 Technical & Entry Zone
- Current Price: ₹2432, below 50 DMA (₹2506) and 200 DMA (₹2608).
- RSI: 41.9 → approaching oversold zone.
- MACD: -23.7 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹2250–₹2350.
- Long-Term Holding: Strong fundamentals justify holding for 3–5 years despite premium valuations.
✅ Positive
- Exceptional ROCE and ROE.
- Debt-free balance sheet.
- Quarterly profit growth of 21.3%.
⚠️ Limitation
- High P/B ratio reflects expensive valuation.
- Negative PEG ratio indicates growth concerns.
📉 Company Negative News
- Decline in FII (-0.16%) and DII (-0.05%) holdings.
- Stock corrected from 52-week high of ₹3516.
📈 Company Positive News
- Quarterly PAT growth of 21.3% shows strong momentum.
- Dividend yield of 1.72% provides steady income.
🏭 Industry
- Pharmaceutical sector supported by global demand and healthcare expansion.
- Industry PE at 27.6 indicates investor optimism.
🔎 Conclusion
GLAXO is a debt-light pharmaceutical company with exceptional efficiency and profitability.
Despite premium valuations (high P/B and PEG), its strong brand moat and consistent growth justify long-term holding.
Best accumulated around ₹2250–₹2350 for investors with a 3–5 year horizon.