⚠ 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.
GLENMARK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | GLENMARK | Market Cap | 61,590 Cr. | Current Price | 2,184 ₹ | High / Low | 2,298 ₹ |
| Stock P/E | 41.5 | Book Value | 848 ₹ | Dividend Yield | 0.11 % | ROCE | 9.72 % |
| ROE | 7.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,068 ₹ | DMA 200 | 1,917 ₹ |
| Chg in FII Hold | -1.53 % | Chg in DII Hold | 1.48 % | PAT Qtr | 426 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 58.3 | MACD | 46.4 | Volume | 9,04,866 | Avg Vol 1Wk | 7,58,551 |
| Low price | 1,336 ₹ | High price | 2,298 ₹ | PEG Ratio | 20.8 | Debt to equity | 0.02 |
| 52w Index | 88.2 % | Qtr Profit Var | 3.00 % | EPS | 0.74 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Quarterly PAT rose from ₹193 Cr. to ₹426 Cr., showing strong sequential growth.
- ROCE at 9.72% and ROE at 7.35% → relatively weak efficiency compared to peers.
- Debt-to-equity ratio of 0.02 → virtually debt-free.
- Cash flows supported by pharmaceutical demand but margins remain modest.
💹 Valuation Indicators
- P/E Ratio: 41.5 vs Industry PE of 27.6 → trading at a premium.
- P/B Ratio: ~2.6x (₹2184 / ₹848) → reasonable compared to sector peers.
- PEG Ratio: 20.8 → very high, indicating expensive valuation relative to growth.
- Intrinsic Value: Current price above fair value, reflecting optimism and momentum.
🏢 Business Model & Competitive Advantage
- Pharmaceutical company with diversified product portfolio.
- Strong presence in generics and specialty drugs.
- Efficiency metrics lag industry leaders, limiting competitive edge.
📈 Technical & Entry Zone
- Current Price: ₹2184, above 50 DMA (₹2068) and 200 DMA (₹1917).
- RSI: 58.3 → nearing overbought territory.
- MACD: 46.4 → bullish momentum.
- Entry Zone: Attractive accumulation between ₹1900–₹2000.
- Long-Term Holding: Suitable for investors willing to tolerate volatility; 3–5 year horizon recommended.
✅ Positive
- Debt-light balance sheet.
- Strong sequential PAT growth.
- Stock trading near 52-week high, reflecting investor confidence.
⚠️ Limitation
- Low ROE and ROCE compared to peers.
- High PEG ratio indicates expensive valuation relative to growth.
📉 Company Negative News
- Decline in FII holdings (-1.53%).
- Efficiency metrics below industry average.
📈 Company Positive News
- DII holdings increased by 1.48%, showing institutional support.
- Quarterly PAT more than doubled sequentially.
🏭 Industry
- Pharmaceutical sector supported by global demand and healthcare expansion.
- Industry PE at 27.6 indicates moderate investor optimism.
🔎 Conclusion
GLENMARK shows strong profit momentum but efficiency metrics remain weak compared to peers.
Valuations are stretched with a high PEG ratio, suggesting growth is already priced in.
Best accumulated around ₹1900–₹2000 for cautious investors with a 3–5 year horizon, while monitoring profitability sustainability.