GLAND - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.9
| Stock Code | GLAND | Market Cap | 31,158 Cr. | Current Price | 1,890 ₹ | High / Low | 2,131 ₹ |
| Stock P/E | 26.2 | Book Value | 610 ₹ | Dividend Yield | 0.95 % | ROCE | 15.8 % |
| ROE | 11.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,759 ₹ | DMA 200 | 1,783 ₹ |
| Chg in FII Hold | -0.32 % | Chg in DII Hold | 0.36 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 302 Cr. |
| RSI | 69.1 | MACD | 43.1 | Volume | 63,396 | Avg Vol 1Wk | 7,57,469 |
| Low price | 1,200 ₹ | High price | 2,131 ₹ | PEG Ratio | -7.65 | Debt to equity | 0.00 |
| 52w Index | 74.1 % | Qtr Profit Var | 10.4 % | EPS | 71.0 ₹ | Industry PE | 29.1 |
📊 Analysis: Gland Pharma shows moderate fundamentals with ROCE at 15.8% and ROE at 11.6%, which are below ideal long-term compounding levels. The company is debt-free, ensuring financial stability. EPS of 71 ₹ supports earnings strength, but the PEG ratio (-7.65) indicates weak growth relative to valuation. P/E of 26.2 is slightly below industry PE (29.1), suggesting fair valuation. Quarterly PAT growth (10.4%) is positive but not very strong, and RSI at 69.1 shows the stock is nearing overbought territory.
💰 Entry Price Zone: Ideal accumulation range is 1,750 ₹ – 1,800 ₹, aligning with DMA 200 (1,783 ₹) for margin of safety. Current price (1,890 ₹) is above this zone, so waiting for dips is advisable.
📈 Exit / Holding Strategy: For existing holders, maintain positions with a medium-term horizon (2–3 years) given stable earnings and debt-free status. Partial profit booking can be considered near 2,100 ₹ – 2,130 ₹ (recent highs). Long-term holding beyond 3 years requires improvement in ROE/ROCE and growth visibility. Dividend yield (0.95%) is modest, so focus remains on capital appreciation.
✅ Positive
- Debt-free balance sheet
- EPS of 71 ₹ supports valuation strength
- Quarterly PAT growth (326 Cr. vs 302 Cr.)
- Industry PE higher than company PE, showing relative attractiveness
⚠️ Limitation
- ROE (11.6%) and ROCE (15.8%) are moderate
- PEG ratio (-7.65) indicates weak growth prospects
- RSI at 69.1 suggests overbought levels
- Trading volume significantly below weekly average
📉 Company Negative News
- Decline in FII holdings (-0.32%)
- Stock consolidating below 52-week high (2,131 ₹)
📈 Company Positive News
- DII holdings increased (+0.36%)
- Quarterly profit growth of 10.4% YoY
- Stable moving averages (DMA 50 at 1,759 ₹, DMA 200 at 1,783 ₹)
🏭 Industry
- Pharmaceutical sector enjoys long-term demand stability
- Industry PE at 29.1 highlights investor optimism
- Sector rotation favors healthcare and pharma in defensive cycles
🔎 Conclusion
Gland Pharma is a moderately valued pharma stock with debt-free status and stable earnings. While efficiency ratios are modest and growth visibility is limited, the company remains a fair candidate for medium-term holding. Ideal strategy: accumulate near 1,750–1,800 ₹, hold for 2–3 years, and book partial profits near highs (2,100–2,130 ₹). Long-term compounding potential depends on improvement in ROE/ROCE and sustained growth momentum.