GLAXO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | GLAXO | Market Cap | 40,764 Cr. | Current Price | 2,406 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 43.1 | Book Value | 101 ₹ | Dividend Yield | 1.74 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,457 ₹ | DMA 200 | 2,631 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | -0.05 % | PAT Qtr | 253 Cr. | PAT Prev Qtr | 205 Cr. |
| RSI | 49.7 | MACD | -14.8 | Volume | 38,120 | Avg Vol 1Wk | 69,846 |
| Low price | 1,960 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.17 | Debt to equity | 0.02 |
| 52w Index | 28.7 % | Qtr Profit Var | 3.15 % | EPS | 56.0 ₹ | Industry PE | 29.1 |
📊 GLAXO shows strong operational efficiency with very high ROCE and ROE, low debt, and steady profitability. However, technical indicators (MACD negative, RSI neutral, price below 200 DMA) suggest weak momentum. It is a fair candidate for swing trading, but caution is advised due to premium valuations and declining institutional interest.
💡 Optimal Entry Price: Around 2,350–2,400 ₹ (near current support zone).
📈 Exit Strategy: If already holding, consider booking profits near 2,700–2,750 ₹ resistance, or exit if price falls below 2,300 ₹.
Positive ✅
- ROCE (62.6%) and ROE (46.4%) reflect exceptional efficiency.
- Debt-to-equity ratio of 0.02 shows negligible leverage risk.
- Dividend yield of 1.74% provides moderate income stability.
- Quarterly PAT growth from 205 Cr. to 253 Cr. (+3.15%) shows earnings consistency.
- EPS of 56 ₹ supports long-term profitability.
Limitation ⚠️
- High P/E of 43.1 compared to industry average of 29.1 indicates premium valuation.
- PEG ratio of -2.17 suggests weak growth relative to valuation.
- Price trading below 200 DMA (2,631 ₹), showing lack of strong momentum.
- MACD negative (-14.8) signals bearish undertone.
- Decline in FII (-0.16%) and DII (-0.05%) holdings reflects reduced institutional confidence.
Company Negative News 📉
- No major negative news reported, but weak technical signals and institutional selling are concerns.
Company Positive News 📈
- Stable quarterly profit growth.
- Strong fundamentals with high efficiency and low debt.
Industry 🌐
- Industry P/E at 29.1 highlights sector trades at a premium.
- Pharmaceutical sector benefits from steady demand and defensive characteristics.
Conclusion 📝
GLAXO is fundamentally strong with excellent efficiency metrics and low debt, but technical indicators show weak momentum. Entry near 2,350–2,400 ₹ offers limited risk. Exit around 2,700–2,750 ₹ or below 2,300 ₹ if trend weakens. While suitable for cautious swing trading, premium valuations and bearish signals suggest limited short-term upside.