GLAND - Investment Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Investment List📊 Investment Analysis: Gland Pharma Ltd. (GLAND)
Investment Rating: 3.1
🔍 Long-Term Investment Outlook
Gland Pharma exhibits a strong balance sheet and solid fundamentals, but its valuation and technical signals hint at limited upside unless earnings growth resumes meaningfully.
✅ Strengths
Almost Debt-Free (D/E: 0.03) — Strong financial resilience.
EPS: ₹42.4 — Healthy earnings per share.
Book Value: ₹555 vs CMP ₹2,102 — Significant premium indicates market optimism.
ROCE: 11.9% | ROE: 7.82% — Moderate capital efficiency.
FII Holding ↑ (+0.49%) — Foreign institutional interest increasing.
MACD: +81.3 — Strong momentum signal.
⚠️ Concerns
High P/E: 49.6 vs Industry PE: 34.0 — Premium valuation could limit upside.
PEG Ratio: -2.97 — Indicates negative earnings growth; a major caution.
Quarterly PAT Decline (₹205 Cr. → ₹187 Cr.) — Earnings contraction underway.
Dividend Yield: 0.86% — Low passive return.
RSI: 76.4 — Overbought zone; risk of technical correction.
Price near 52W High (₹2,221) — Limited technical headroom.
DII Holding ↓ (-0.41%) — Slight domestic institutional exit.
🎯 Ideal Entry Price Zone
₹1,750–₹1,850
Near 50-DMA and 200-DMA, offering technical support and better valuation comfort.
Wait for RSI to cool off and PEG to improve before fresh entry.
🧭 Strategy for Existing Holders
⏳ Holding Period
18–24 Months
Monitor for margin expansion and earnings recovery through regulatory approvals or capacity scaling.
🚪 Exit Strategy
Exit Zone: ₹2,200–₹2,250, near recent highs.
Exit Triggers
PEG remains negative for 2+ quarters.
ROE stagnates below 8%.
Significant DII/FII outflows begin.
Price drops below ₹1,850 with weakening momentum.
🧠 Final Thought
Gland Pharma isn’t a broken story—it’s just priced for perfection without perfect performance. If you’re holding, ride cautiously with profit targets in sight. If you’re considering entry, wait for a more meaningful reset and clearer earnings acceleration.
Would you like me to line this up against Divi’s or Laurus Labs for a sharper pharma comparison?
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