GLAXO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | GLAXO | Market Cap | 40,304 Cr. | Current Price | 2,377 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 40.5 | Book Value | 101 ₹ | Dividend Yield | 1.77 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,501 ₹ | DMA 200 | 2,606 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | -0.05 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 253 Cr. |
| RSI | 36.2 | MACD | -29.9 | Volume | 24,466 | Avg Vol 1Wk | 37,066 |
| Low price | 2,220 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.04 | Debt to equity | 0.02 |
| 52w Index | 12.1 % | Qtr Profit Var | 21.3 % | EPS | 58.8 ₹ | Industry PE | 27.2 |
📊 GLAXO shows limited swing trade potential in the short term. The RSI at 36.2 indicates oversold conditions, but MACD (-29.9) remains negative, suggesting weak momentum. Fundamentals are strong with ROCE at 62.6% and ROE at 46.4%, but valuation is stretched with a high P/E of 40.5 and a negative PEG ratio (-2.04). The optimal entry price would be near support around 2,300–2,350 ₹. If already holding, consider exiting near resistance around 2,500–2,550 ₹ unless momentum improves.
✅ Positive
- Excellent profitability metrics: ROCE 62.6%, ROE 46.4%
- Quarterly profit growth (PAT up from 253 Cr. to 277 Cr.)
- EPS of 58.8 ₹ supports earnings strength
- Dividend yield of 1.77% adds shareholder value
⚠️ Limitation
- High P/E ratio (40.5) compared to industry average (27.2)
- Negative PEG ratio (-2.04) reflects growth concerns
- Weak technical indicators: RSI oversold, MACD negative
- Price trading below both 50 DMA (2,501 ₹) and 200 DMA (2,606 ₹)
📉 Company Negative News
- Decline in institutional holdings (FII -0.16%, DII -0.05%)
- Stock underperforming relative to 52-week high (3,516 ₹)
📈 Company Positive News
- Quarterly profit growth of 21.3%
- Strong ROCE and ROE highlight operational efficiency
- Dividend yield supports investor returns
🏭 Industry
- Industry P/E at 27.2, lower than GLAXO’s 40.5, suggesting overvaluation
- Pharmaceutical sector demand remains resilient with long-term growth potential
🔎 Conclusion
GLAXO is fundamentally strong with excellent profitability and dividends, but technical weakness and high valuation limit swing trade attractiveness. Entry around 2,300–2,350 ₹ is optimal, with exit near 2,500–2,550 ₹ if resistance holds. Long-term investors may continue holding due to strong fundamentals, while swing traders should remain cautious until momentum indicators turn positive.