GLAXO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | GLAXO | Market Cap | 38,407 Cr. | Current Price | 2,266 ₹ | High / Low | 3,500 ₹ |
| Stock P/E | 42.3 | Book Value | 132 ₹ | Dividend Yield | 2.52 % | ROCE | 61.3 % |
| ROE | 43.3 % | Face Value | 10.0 ₹ | DMA 50 | 2,300 ₹ | DMA 200 | 2,477 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.02 % | PAT Qtr | 275 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 53.0 | MACD | -44.1 | Volume | 2,83,473 | Avg Vol 1Wk | 3,26,476 |
| Low price | 2,088 ₹ | High price | 3,500 ₹ | PEG Ratio | 2.70 | Debt to equity | 0.01 |
| 52w Index | 12.6 % | Qtr Profit Var | 5.69 % | EPS | 59.7 ₹ | Industry PE | 32.1 |
GLAXO shows strong fundamentals with high ROCE (61.3%) and ROE (43.3%), a low debt-to-equity ratio (0.01), and a healthy dividend yield of 2.52%. However, technical indicators are weak: the current price (₹2,266) is below both the 50 DMA (₹2,300) and 200 DMA (₹2,477), MACD is negative (-44.1), and volume is lower than the weekly average. RSI at 53.0 suggests neutral momentum. Valuation is stretched with a P/E of 42.3 compared to the industry average of 32.1 and a high PEG ratio of 2.70. Overall, GLAXO is fundamentally strong but technically weak, making it a cautious swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹2,200–2,240 is favorable, aligning with support near recent lows.
📈 Exit Strategy
If already holding, consider exiting near ₹2,400–2,450 (resistance zone close to 200 DMA). A stop-loss below ₹2,150 is advisable to manage risk.
✅ Positive
- 📌 Strong ROCE (61.3%) and ROE (43.3%) highlight efficiency.
- 📌 Dividend yield of 2.52% provides steady income.
- 📌 Debt-to-equity ratio of 0.01 ensures financial stability.
- 📌 EPS of ₹59.7 supports earnings consistency.
⚠️ Limitation
- 📌 Current price below both DMA 50 and DMA 200 indicates bearish trend.
- 📌 Negative MACD (-44.1) signals weak momentum.
- 📌 High P/E (42.3) compared to industry average (32.1) suggests overvaluation.
- 📌 PEG ratio of 2.70 indicates expensive growth.
- 📌 FII (-0.01%) and DII (-0.02%) holdings declined, showing reduced institutional confidence.
📰 Company Negative News
- 📌 No major negative news reported, but valuation concerns persist.
🌟 Company Positive News
- 📌 Stable quarterly profits (₹275 Cr. vs ₹277 Cr.).
- 📌 Strong efficiency metrics and consistent dividend payout.
🏭 Industry
- 📌 Industry P/E of 32.1 is lower than GLAXO’s 42.3, suggesting relative overvaluation.
- 📌 Pharmaceutical sector remains resilient with consistent demand.
🔎 Conclusion
GLAXO is fundamentally strong but technically weak for swing trading. Entry near ₹2,200–2,240 offers limited upside, with profit booking advisable near ₹2,400–2,450. A strict stop-loss below ₹2,150 is essential to manage risk effectively.
Would you like me to also compute a risk-reward ratio for this setup, or provide a deeper technical chart analysis to refine the swing trade outlook?