GLAXO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GLAXO | Market Cap | 41,138 Cr. | Current Price | 2,432 ₹ | High / Low | 3,516 ₹ |
| Stock P/E | 41.3 | Book Value | 101 ₹ | Dividend Yield | 1.72 % | ROCE | 62.6 % |
| ROE | 46.4 % | Face Value | 10.0 ₹ | DMA 50 | 2,506 ₹ | DMA 200 | 2,608 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | -0.05 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 253 Cr. |
| RSI | 41.9 | MACD | -23.7 | Volume | 28,349 | Avg Vol 1Wk | 42,840 |
| Low price | 2,220 ₹ | High price | 3,516 ₹ | PEG Ratio | -2.08 | Debt to equity | 0.02 |
| 52w Index | 16.4 % | Qtr Profit Var | 21.3 % | EPS | 58.8 ₹ | Industry PE | 27.6 |
📊 Chart & Trend: GLAXO is trading at ₹2,432, below both its 50 DMA (₹2,506) and 200 DMA (₹2,608), reflecting short-term weakness. RSI at 41.9 suggests the stock is nearing oversold territory, while MACD (-23.7) indicates bearish momentum. Bollinger Bands show price leaning toward the lower band, signaling pressure but potential stabilization.
📈 Momentum Signals: Volume (28K) is below the 1-week average (42K), showing reduced participation. RSI near 40 suggests caution but also hints at accumulation opportunities.
💡 Entry Zone: ₹2,380–₹2,420 (support zone).
🚪 Exit Zone: ₹2,500–₹2,560 (resistance). A breakout above ₹2,560 could open room toward ₹2,650.
📌 Trend Status: The stock is currently consolidating with bearish bias after correcting from its high of ₹3,516, showing sideways-to-downward movement around key averages.
Positive
- Strong ROCE (62.6%) and ROE (46.4%) highlight excellent capital efficiency.
- EPS of ₹58.8 reflects solid profitability.
- Quarterly PAT growth (₹277 Cr vs ₹253 Cr) shows earnings momentum.
- Dividend yield of 1.72% adds income appeal.
Limitation
- High P/E (41.3) compared to industry PE (27.6), limiting valuation comfort.
- Negative PEG ratio (-2.08) suggests valuation concerns relative to growth trajectory.
- Stock trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- Decline in FII holdings (-0.16%) and DII holdings (-0.05%) signals reduced institutional confidence.
- Stock corrected sharply from its 52-week high of ₹3,516, showing volatility.
Company Positive News
- Quarterly profit growth of 21.3% supports earnings strength.
- Strong ROCE and ROE indicate superior operational efficiency.
- Dividend yield of 1.72% enhances shareholder returns.
Industry
- Pharmaceutical sector enjoys steady demand and global growth opportunities.
- Industry PE (27.6) is lower than GLAXO’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning GLAXO as a premium player.
Conclusion
⚖️ GLAXO is in a consolidation phase with bearish undertones. Fundamentals remain strong (high ROCE/ROE, EPS growth, dividend yield), but technical signals suggest caution in the short term. Entry near ₹2,380–₹2,420 offers a margin of safety, with exits around ₹2,500–₹2,560. Long-term investors may hold for sector strength and operational efficiency, while traders should wait for a breakout above ₹2,560 for momentum trades.
Selva, would you like me to extend this into a peer benchmarking overlay against pharma majors like Pfizer India, Abbott India, and Sanofi India? That would highlight relative strength and rotation opportunities across the pharmaceutical sector.