GLAXO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📈 Analysis: GLAXO presents a cautious swing trade opportunity. The current price of ₹2,663 is below both the 50 DMA (₹2,759) and 200 DMA (₹2,780), indicating a short-term downtrend. RSI at 41.2 and MACD at -29.0 reflect weak momentum, though volume is slightly above average. Fundamentally, the company is strong — excellent ROCE (62.6%) and ROE (46.4%), near-zero debt, and consistent profitability. However, the high P/E (48.0), negative PEG ratio (-2.42), and recent PAT decline suggest valuation concerns. Institutional activity is flat, with minor shifts in FII and DII holdings.

🎯 Optimal Entry Price: ₹2,600–₹2,630 (near support and oversold RSI zone)

🚪 Exit Strategy (if holding): Consider exiting near ₹2,850–₹2,900 or if RSI crosses 60 with MACD turning positive.

✅ Positive

• 📊 ROCE (62.6%) and ROE (46.4%) — exceptional capital efficiency
• 💸 Debt-to-equity ratio of 0.01 — strong financial health
• 📈 EPS of ₹55.6 — solid earnings base
• 💰 Dividend yield of 1.58% — moderate income support
• 📈 Volume slightly above average — rising interest

⚠️ Limitation

• 📉 RSI and MACD indicate weak momentum
• 📉 Price below key moving averages — bearish trend
• 📉 PEG ratio of -2.42 — poor growth valuation
• 📉 PAT dropped from ₹260 Cr. to ₹205 Cr.
• 📉 FII holding decreased (-0.10%) — foreign investor caution

📰 Company Negative News

• No major public negative news, but earnings decline and valuation concerns are notable

🌟 Company Positive News

• Strong return ratios and consistent profitability support long-term investor confidence

🏭 Industry

• Industry P/E is 33.1 — GLAXO trades at a premium, reflecting brand strength and investor expectations
• Pharmaceutical sector remains resilient with steady demand and innovation-driven growth

🧾 Conclusion

GLAXO is a fundamentally strong but technically weak swing trade candidate. Entry near support offers a tactical opportunity if momentum improves. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also compare GLAXO’s setup with peers like Sanofi India or Pfizer to help refine your swing strategy.