GLENMARK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | GLENMARK | Market Cap | 67,906 Cr. | Current Price | 2,406 ₹ | High / Low | 2,474 ₹ |
| Stock P/E | 45.8 | Book Value | 848 ₹ | Dividend Yield | 0.10 % | ROCE | 9.72 % |
| ROE | 7.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,181 ₹ | DMA 200 | 1,988 ₹ |
| Chg in FII Hold | 1.15 % | Chg in DII Hold | -0.81 % | PAT Qtr | 426 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 70.5 | MACD | 67.6 | Volume | 8,13,703 | Avg Vol 1Wk | 8,89,922 |
| Low price | 1,340 ₹ | High price | 2,474 ₹ | PEG Ratio | 22.9 | Debt to equity | 0.02 |
| 52w Index | 94.0 % | Qtr Profit Var | 3.00 % | EPS | 0.74 ₹ | Industry PE | 30.1 |
📊 Financials: GLENMARK shows mixed fundamentals. ROE at 7.35% and ROCE at 9.72% reflect weak efficiency compared to peers. EPS at ₹0.74 is low relative to price levels. Quarterly PAT rose to ₹426 Cr. from ₹193 Cr., indicating strong growth momentum, but sustainability remains uncertain. Debt-to-equity at 0.02 ensures financial stability.
💹 Valuation: Current P/E of 45.8 is significantly higher than the industry average of 30.1, suggesting overvaluation. PEG ratio of 22.9 further highlights expensive growth valuation. Book value of ₹848 vs. CMP ₹2,406 shows a steep P/B multiple, justified only by recent earnings momentum.
🏗️ Business Model: GLENMARK operates in pharmaceuticals with a diversified portfolio across generics, specialty, and APIs. Its competitive advantage lies in global presence and product pipeline, but profitability metrics remain weak compared to industry leaders.
📈 Entry Zone: Safer accumulation near ₹2,180–₹2,200 (close to 50 DMA support). RSI at 70.5 indicates overbought conditions, suggesting caution. Exit strategy near ₹2,450–₹2,470 with stop-loss around ₹2,150.
🕰️ Long-Term Holding: While momentum is strong, weak fundamentals and high valuation limit long-term attractiveness. Suitable for swing trades rather than aggressive long-term holding.
Positive
- Strong quarterly PAT growth (₹426 Cr. vs ₹193 Cr.)
- Debt-to-equity ratio at 0.02 ensures stability
- FII holdings increased (+1.15%)
- Stock trading near 52-week high (94% index)
Limitation
- High P/E (45.8) vs. industry average (30.1)
- Weak ROE (7.35%) and ROCE (9.72%)
- Low EPS (₹0.74)
- High PEG ratio (22.9) signals expensive valuation
- DII holdings decreased (-0.81%)
Company Negative News
- No major negative news reported; valuation concerns persist
Company Positive News
- Quarterly profit growth more than doubled
- FII interest increased (+1.15%)
Industry
- Pharma industry P/E at 30.1 reflects premium valuations
- Sector supported by global demand and defensive positioning
Conclusion
GLENMARK is riding strong momentum with impressive quarterly profit growth, but weak fundamentals and high valuation limit its long-term appeal. Entry near ₹2,180–₹2,200 is safer, with profit booking advised near ₹2,450–₹2,470. Best suited for swing traders rather than long-term investors seeking fundamental strength.