GLAXO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Breakdown

Profitability

ROE: 46.4% and ROCE: 62.6% — outstanding, indicating exceptional capital efficiency.

EPS: ₹55.6 — strong earnings base, consistent with its premium brand positioning.

PAT Qtr: ₹205 Cr vs ₹260 Cr — slight dip, but still shows healthy YoY growth of 12.7%.

Balance Sheet & Leverage

Debt-to-Equity: 0.01 — virtually debt-free, enhancing financial resilience.

Book Value: ₹115 — implies a P/B ratio of ~23.9, which is high but justified by superior returns.

Dividend Yield: 1.52% — modest, but consistent and sustainable.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 49.7 Above industry average (33.4) — reflects brand premium

PEG Ratio -2.51 Negative PEG suggests caution — possibly due to slowing growth or earnings volatility

Intrinsic Value ~₹2,600–₹2,700 CMP is near fair value zone

Valuation is rich, but supported by strong fundamentals and brand strength.

💊 Business Model & Competitive Edge

Sector: Pharmaceuticals — focused on branded generics and consumer healthcare.

Strengths

Backed by global pharma giant GSK, with access to global R&D and product pipeline.

Dominant presence in anti-infectives, dermatology, and respiratory segments.

Strong brand equity and distribution network across India.

FII holding up (+0.37%) — positive institutional sentiment.

Challenges

PEG ratio flags potential growth concerns.

DII holding slightly down (-0.08%) — some caution from domestic institutions.

Quarterly profit dip and MACD suggest short-term weakness.

📉 Technicals & Entry Zone

Current Price: ₹2,749

DMA 50: ₹2,881 | DMA 200: ₹2,803 — trading below both, short-term bearish

RSI: 43.4 — approaching oversold zone

MACD: Negative — momentum weak

📌 Suggested Entry Zone: ₹2,600–₹2,700

A dip near the lower end of this range would offer a better margin of safety for long-term accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Exceptional ROE/ROCE, near-zero debt, and brand dominance make GLAXO a high-quality long-term play.

Accumulate on dips: Ideal for investors seeking stable returns from a premium pharma franchise with defensive characteristics.

You can explore GlaxoSmithKline Pharmaceuticals’ full financials and valuation metrics or review its performance and peer comparison on Value Research for deeper insights. Let me know if you'd like a comparison with Pfizer India or Sanofi.

Edit in a page