GLENMARK - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.4

📊 GLENMARK shows moderate potential for swing trading. The fundamentals are mixed: valuation is slightly expensive (P/E 38.2 vs industry 30.6), ROCE (9.72%) and ROE (7.35%) are weak, and quarterly profit has dropped sharply (-67.6%). However, technical indicators suggest neutral-to-positive momentum (RSI 55.4, MACD positive). The stock is trading above both its 50 DMA (1,925 ₹) and 200 DMA (1,804 ₹), showing short-term strength. Optimal entry would be near 1,950–1,970 ₹. If already holding, consider exiting around 2,200–2,250 ₹ if momentum continues.

✅ Positive

• 📈 Trading above both 50 DMA and 200 DMA, showing technical strength.
• 💰 Debt-to-equity ratio of 0.02 ensures financial stability.
• 📊 EPS of 5.41 ₹ provides earnings visibility.
• 🌍 Increase in both FII (+0.11%) and DII (+0.97%) holdings shows investor confidence.
• 📉 Large market cap (56,179 Cr.) ensures liquidity.

⚠️ Limitation

• 📉 Quarterly PAT dropped significantly (193 Cr. vs 596 Cr., -67.6%).
• 📊 ROCE (9.72%) and ROE (7.35%) are relatively weak compared to peers.
• 📉 P/E ratio (38.2) is higher than industry average (30.6), suggesting premium valuation.
• 📊 PEG ratio (19.1) highlights overvaluation relative to growth.
• 📉 Dividend yield of 0.13% is very low.

🚨 Company Negative News

No major negative news reported, but sharp profit decline raises caution for traders.

🌟 Company Positive News

Strong institutional investor interest and technical strength above DMA levels highlight resilience despite weak fundamentals.

🏭 Industry

The pharmaceutical industry trades at an average P/E of 30.6. GLENMARK trades at a premium (38.2), reflecting growth expectations but also valuation risk.

📌 Conclusion

GLENMARK is a moderate candidate for swing trading with technical strength but weak fundamentals. Entry near 1,950–1,970 ₹ is optimal. Exit strategy should target 2,200–2,250 ₹ if momentum improves. Caution is advised due to sharp profit decline and relatively high valuation.

I can also prepare a side-by-side comparison with other pharmaceutical mid-cap stocks to highlight whether GLENMARK offers stronger swing trade potential than its peers.