GLAXO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | GLAXO | Market Cap | 39,822 Cr. | Current Price | 2,350 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 40.0 | Book Value | 101 ₹ | Dividend Yield | 1.79 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,425 ₹ | DMA 200 | 2,552 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.02 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 253 Cr. |
| RSI | 42.0 | MACD | -7.92 | Volume | 1,32,083 | Avg Vol 1Wk | 1,21,402 |
| Low price | 2,218 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.02 | Debt to equity | 0.02 |
| 52w Index | 10.2 % | Qtr Profit Var | 21.3 % | EPS | 58.8 ₹ | Industry PE | 30.2 |
GLAXO shows strong efficiency metrics with ROCE (62.6%) and ROE (46.4%), but valuation and technical indicators suggest caution for swing trading. The stock trades at a P/E of 40.0, above the industry average of 30.2, while the PEG ratio (-2.02) signals weak growth relative to valuation. RSI at 42.0 and negative MACD (-7.92) indicate bearish momentum. The optimal entry price would be near support levels around ₹2,250–2,280. If already holding, consider exiting around ₹2,500–2,550, near the 200 DMA and resistance zone.
✅ Positive
- High ROCE (62.6%) and ROE (46.4%) show strong operational efficiency.
- Quarterly PAT growth from ₹253 Cr. to ₹277 Cr. (+21.3%).
- Dividend yield of 1.79% provides moderate income.
- Low debt-to-equity ratio (0.02) ensures financial stability.
⚠️ Limitation
- P/E ratio (40.0) is higher than industry average (30.2), suggesting overvaluation.
- PEG ratio (-2.02) reflects weak growth prospects relative to valuation.
- Stock trading below 200 DMA indicates medium-term weakness.
📉 Company Negative News
- Slight decline in both FII (-0.01%) and DII (-0.02%) holdings.
- Weak 52-week index performance (10.2%), showing underperformance.
📈 Company Positive News
- Quarterly profit growth (+21.3%) supports earnings momentum.
- Strong efficiency metrics (ROCE and ROE) highlight operational strength.
🏭 Industry
- Industry P/E is 30.2, lower than GLAXO’s 40.0, suggesting relative overvaluation.
- Pharmaceutical sector remains resilient with long-term demand drivers.
🔎 Conclusion
GLAXO is fundamentally strong but currently overvalued relative to industry peers, making it a cautious swing trade candidate. Entry near ₹2,250–2,280 offers a safer risk-reward setup, while profit booking should be considered around ₹2,500–2,550. Traders should monitor technical momentum and institutional activity for confirmation.