GLAXO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GLAXO | Market Cap | 40,870 Cr. | Current Price | 2,408 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 43.2 | Book Value | 101 ₹ | Dividend Yield | 1.74 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,463 ₹ | DMA 200 | 2,638 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | -0.05 % | PAT Qtr | 253 Cr. | PAT Prev Qtr | 205 Cr. |
| RSI | 50.0 | MACD | -27.5 | Volume | 21,634 | Avg Vol 1Wk | 68,102 |
| Low price | 1,921 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.18 | Debt to equity | 0.02 |
| 52w Index | 30.6 % | Qtr Profit Var | 3.15 % | EPS | 56.0 ₹ | Industry PE | 29.0 |
📈 Chart & Trend Analysis: GLAXO is trading at ₹2,408, below both its 50 DMA (₹2,463) and 200 DMA (₹2,638), indicating short-term weakness and medium-term resistance. RSI at 50.0 suggests neutral momentum, while MACD at -27.5 signals bearish divergence. Bollinger Bands show price near the lower band, reflecting pressure and possible consolidation.
📊 Volume Trends: Current volume (21k) is significantly lower than the 1-week average (68k), suggesting weak participation and lack of momentum for a breakout.
🎯 Entry Zone: ₹2,350 – ₹2,400 (support near recent lows)
🚪 Exit Zone: ₹2,550 – ₹2,600 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below moving averages, with weak volume and negative MACD confirming downside pressure.
Positive ✅
- High ROCE (62.6%) and ROE (46.4%) reflect strong operational efficiency.
- Debt-to-equity ratio of 0.02 indicates negligible leverage risk.
- Dividend yield of 1.74% provides income stability.
- Quarterly PAT growth (₹253 Cr vs ₹205 Cr) shows earnings improvement.
Limitation ⚠️
- High P/E of 43.2 compared to industry average (29.0) suggests expensive valuations.
- PEG ratio of -2.18 highlights weak growth-adjusted valuation.
- Price trading below both 50 DMA and 200 DMA indicates technical weakness.
- Low trading volume reduces breakout potential.
Company Negative News 📉
- Decline in institutional holdings (FII -0.16%, DII -0.05%) reflects cautious sentiment.
Company Positive News 📈
- Quarterly profit growth of 3.15% shows steady performance.
- EPS of ₹56 supports valuation strength.
Industry 🌐
- Industry P/E at 29.0 indicates sector trades at premium valuations.
- Pharmaceutical sector benefits from consistent demand and regulatory support.
Conclusion 📝
GLAXO is consolidating below key moving averages with neutral RSI and bearish MACD, suggesting short-term weakness. Entry near ₹2,350–₹2,400 offers margin of safety, while exits around ₹2,550–₹2,600 provide profit-taking opportunities. Fundamentally strong with high ROCE and low debt, but valuations remain stretched and technical signals are weak. Traders should approach cautiously, while long-term investors may accumulate selectively given sector resilience.
Would you like me to extend this into a peer benchmarking overlay (comparing GLAXO against pharma peers like Pfizer, Abbott India, Sanofi) so you can evaluate relative strength and sector rotation opportunities?