GLAXO - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.5

GLAXO boasts exceptional fundamentals, especially in profitability and capital efficiency, but the high valuation and technical indicators suggest a pause or mild retracement before the next leg up. It’s a good candidate for a swing trade if entered on weakness rather than at current levels.

🧾 Fundamental Overview

Valuation Check

P/E: 61.0 vs Industry PE: 34.0 → Highly overvalued

PEG Ratio: -3.11 → Negative growth-adjusted valuation

EPS: ₹54.8, Book Value: ₹115 → High market premium

Profitability

ROCE: 63.2%, ROE: 46.9% → Industry-leading capital efficiency

PAT Growth: ₹263 Cr. vs ₹230 Cr. → Solid quarterly growth (+36.4%)

Dividend Yield: 1.33% → Decent, not a key swing factor

Debt-to-Equity: 0.01 → Virtually debt-free, strong balance sheet

📉 Technical Outlook

Price Action

Current Price ₹3,150 is near

DMA 50: ₹3,158 → Slightly below short-term average

DMA 200: ₹2,806 → Strong longer-term support

52W Index: 77.1% → Approaching yearly high of ₹3,516

Momentum

RSI: 46.0 → Neutral, tilting slightly bearish

MACD: -33.0 → Bearish momentum trend

Volume: 1.01L vs Avg: 81K → Active, but not climactic

🧭 Swing Trade Setup

✅ Optimal Entry Zone

Buy Range: ₹3,020–₹3,070 Entry below DMA 50 and closer to last support band for lower risk.

A dip toward the 200-DMA (~₹2,800) would offer a high-conviction buy.

🚪 Exit Strategy

Target Range: ₹3,350–₹3,400 Sell before resistance at ₹3,516 reasserts.

Stop-Loss: ₹2,980 Below last consolidation base.

Already holding? → Consider holding through minor weakness as long as price remains above ₹3,000. → If momentum doesn’t pick up and MACD flattens, book profits at ₹3,350 range. → Strong fundamentals justify a trailing stop strategy if price momentum resumes.

Need a list of other high-ROCE pharma plays showing better entry setups right now? I’ve got a couple worth watching.

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