GLENMARK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

📊 Financials & Operational Performance

EPS (₹37.1) and PAT Growth (+6.3%): Positive trend in profits — a healthy quarterly surge (+116% variation) hints at operational improvement or one-time gains.

ROCE (19.4%) & ROE (15.8%): Decent, though not elite. Return metrics suggest better than average capital efficiency.

Debt-to-Equity (0.28): Manageable gearing — not alarming, but worth watching in a rising rate cycle.

Dividend Yield (0.12%): Minimal—clearly growth-oriented over income distribution.

💰 Valuation Indicators

Metric Value Implication

P/E Ratio 46.3 Premium vs. industry PE (34.0) — growth priced in

P/B Ratio ~6.87 Rich valuation relative to book value

PEG Ratio 7.41 Alarmingly high — indicates valuation is outpacing growth

Intrinsic Value — Estimated ~₹1,900–₹2,000 — trading above fair zone

⚠️ Elevated PEG and P/E ratios show optimism baked in. Unless future earnings justify it, correction risk is possible.

🧬 Business Model & Competitive Edge

Domain: Diversified pharma — generics, APIs, specialty formulations, and a global footprint.

Strengths

Presence in regulated markets with strong R&D capacity.

Benefiting from product launches and brand visibility.

Risks

FII exiting (-2.53%) may suggest concerns over valuation or future growth.

Slightly leveraged balance sheet vs peers.

High PEG hints that expectations may be running ahead of reality.

📈 Technical Setup & Entry Zone

Current Price: ₹2,158

DMA 50 / 200: ₹1,850 / ₹1,576 — strong upward momentum

RSI (73.2): Overbought — caution advised for new entry

MACD (119): Strong bullish trend continuing

Volume: Stable with healthy liquidity

🛒 Suggested Entry Zone: ₹1,850–₹1,950 Wait for RSI to cool below 60 before re-entry. A better risk-reward window may emerge with consolidation or mild dip.

🧭 Long-Term Holding Guidance

GLENMARK’s fundamentals lean growth-positive, backed by solid Qtr earnings and expanding DII holdings (+3.04%). For a long-term thesis

Monitor margin resilience and continued PAT growth

Watch debt metrics and ROE improvement toward 20%+

Track R&D pipeline and global regulatory wins (ANDA approvals, etc.)

Not a bad add to a pharma basket—but don't chase it while momentum's running hot.

Want a full heatmap comparing GLENMARK with Cipla, Zydus, or Dr. Reddy’s? I can slice through the pharma jungle for you. 🌿💊 Let’s optimize your portfolio stack.

Edit in a page