GLENMARK - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.9

📊 Core Financials Overview

Profitability

ROE: 7.35% and ROCE: 9.72% — modest returns, below top-tier pharma benchmarks.

EPS: ₹52.7 — solid earnings base, supported by a strong PAT of ₹596 Cr this quarter.

Qtr Profit Var: +31.4% — healthy growth, though previous quarter was significantly lower.

Balance Sheet & Leverage

Debt-to-Equity: 0.03 — nearly debt-free, a strong positive.

Book Value: ₹868 — implies a P/B ratio of ~2.43, reasonable for the sector.

Dividend Yield: 0.12% — minimal, not a key attraction for income investors.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 31.8 Slightly below industry average (33.4) — fair valuation

PEG Ratio 15.9 Very high — suggests growth is overpriced or distorted

Intrinsic Value ~₹1,950–₹2,050 CMP is slightly above fair value zone

Valuation is fair on P/E but PEG ratio flags caution on growth expectations.

💊 Business Model & Competitive Edge

Sector: Pharmaceuticals — generics, specialty, and branded formulations.

Strengths

Global footprint across US, Europe, and emerging markets.

Recent launch of Micafungin injection in the US adds to specialty pipeline

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Strong domestic presence in dermatology, respiratory, and oncology.

DII holding up (+3.04%) — strong domestic institutional confidence.

Challenges

FII holding down (-2.53%) — some foreign investor caution.

PEG ratio and moderate ROE/ROCE suggest growth may be priced in.

Nomura maintains a neutral rating citing Q1 miss and exceptional charges

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📉 Technicals & Entry Zone

Current Price: ₹2,112

DMA 50: ₹1,990 | DMA 200: ₹1,710 — bullish trend intact

RSI: 59.4 — neutral zone

MACD: Positive — momentum strong

📌 Suggested Entry Zone: ₹1,950–₹2,000

A dip near the 50 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong pipeline, global reach, and low debt make Glenmark a solid mid-tier pharma play.

Accumulate on dips: Ideal for investors seeking exposure to generics and specialty pharma with moderate risk.

You can explore Glenmark’s full financials and analyst views or review its technical chart and valuation metrics for deeper insights. Let me know if you'd like a peer comparison with Lupin or Torrent Pharma.

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