GLENMARK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | GLENMARK | Market Cap | 59,188 Cr. | Current Price | 2,098 ₹ | High / Low | 2,298 ₹ |
| Stock P/E | 39.9 | Book Value | 848 ₹ | Dividend Yield | 0.12 % | ROCE | 9.72 % |
| ROE | 7.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,069 ₹ | DMA 200 | 1,919 ₹ |
| Chg in FII Hold | -1.53 % | Chg in DII Hold | 1.48 % | PAT Qtr | 426 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 48.7 | MACD | 37.9 | Volume | 4,86,828 | Avg Vol 1Wk | 6,54,022 |
| Low price | 1,336 ₹ | High price | 2,298 ₹ | PEG Ratio | 20.0 | Debt to equity | 0.02 |
| 52w Index | 79.2 % | Qtr Profit Var | 3.00 % | EPS | 0.74 ₹ | Industry PE | 27.2 |
📊 Glenmark shows weak swing trade potential in the short term. The RSI at 48.7 is neutral, while MACD (37.9) indicates some positive momentum. Fundamentals are mixed: strong book value (848 ₹) and recent profit growth, but low ROCE (9.72%) and ROE (7.35%) limit efficiency. Valuation is stretched with a P/E of 39.9 and an extremely high PEG ratio of 20.0. The optimal entry price would be near support around 2,050–2,070 ₹. If already holding, consider exiting near resistance around 2,250–2,280 ₹ unless momentum strengthens further.
✅ Positive
- Strong book value (848 ₹) compared to current price
- Quarterly profit growth (PAT up from 193 Cr. to 426 Cr.)
- Price above 200 DMA (1,919 ₹), showing longer-term strength
- DII holdings increased by 1.48%, signaling domestic confidence
⚠️ Limitation
- High P/E ratio (39.9) compared to industry average (27.2)
- Extremely high PEG ratio (20.0) reflects poor growth valuation
- Low ROCE (9.72%) and ROE (7.35%) indicate weak efficiency
- EPS of only 0.74 ₹ despite large market cap
📉 Company Negative News
- Decline in FII holdings (-1.53%) shows reduced foreign investor confidence
- Dividend yield at 0.12% offers minimal shareholder return
📈 Company Positive News
- Quarterly profit growth of 3% with PAT doubling compared to previous quarter
- Strong domestic investor support (DII holdings up)
- Stock trading close to 52-week high (2,298 ₹), reflecting recent momentum
🏭 Industry
- Industry P/E at 27.2, lower than Glenmark’s 39.9, suggesting overvaluation
- Pharmaceutical sector remains resilient with long-term demand
🔎 Conclusion
Glenmark shows mixed fundamentals: strong book value and profit growth, but weak efficiency ratios and stretched valuation. Entry around 2,050–2,070 ₹ is optimal, with exit near 2,250–2,280 ₹ if resistance holds. Long-term investors may remain cautious due to poor ROE/ROCE, while swing traders can attempt short-term gains if momentum continues.