GLENMARK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | GLENMARK | Market Cap | 54,720 Cr. | Current Price | 1,940 ₹ | High / Low | 2,286 ₹ |
| Stock P/E | 36.9 | Book Value | 848 ₹ | Dividend Yield | 0.13 % | ROCE | 9.72 % |
| ROE | 7.35 % | Face Value | 1.00 ₹ | DMA 50 | 1,981 ₹ | DMA 200 | 1,856 ₹ |
| Chg in FII Hold | -1.53 % | Chg in DII Hold | 1.48 % | PAT Qtr | 426 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 42.6 | MACD | -5.09 | Volume | 3,90,883 | Avg Vol 1Wk | 4,29,376 |
| Low price | 1,275 ₹ | High price | 2,286 ₹ | PEG Ratio | 18.4 | Debt to equity | 0.02 |
| 52w Index | 65.8 % | Qtr Profit Var | 3.00 % | EPS | 0.74 ₹ | Industry PE | 29.0 |
📈 Chart & Trend Analysis: Glenmark is trading at ₹1,940, below its 50 DMA (₹1,981) but above the 200 DMA (₹1,856). This indicates short-term weakness but medium-term support. RSI at 42.6 suggests the stock is approaching oversold territory, while MACD at -5.09 signals bearish momentum. Bollinger Bands show price drifting toward the lower band, reflecting pressure and possible consolidation.
📊 Volume Trends: Current volume (3.91 lakh) is slightly below the 1-week average (4.29 lakh), indicating reduced participation and limited momentum strength.
🎯 Entry Zone: ₹1,880 – ₹1,920 (support near 200 DMA)
🚪 Exit Zone: ₹2,050 – ₹2,100 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below the 50 DMA, with weak RSI and negative MACD confirming downside pressure.
Positive ✅
- Debt-to-equity ratio of 0.02 indicates low leverage risk.
- Strong quarterly PAT growth (₹426 Cr vs ₹193 Cr) shows earnings improvement.
- 52-week performance index gain of 65.8% highlights long-term strength.
- DII holdings increased (+1.48%), reflecting domestic institutional confidence.
Limitation ⚠️
- Low ROE (7.35%) and ROCE (9.72%) compared to sector leaders.
- High P/E of 36.9 vs industry average (29.0) suggests stretched valuations.
- PEG ratio of 18.4 highlights weak growth-adjusted valuation.
- EPS of ₹0.74 is relatively low, limiting valuation strength.
Company Negative News 📉
- Decline in FII holdings (-1.53%) indicates reduced foreign investor confidence.
Company Positive News 📈
- Quarterly profit growth of 3.0% shows steady improvement.
- EPS growth supported by recent PAT surge.
Industry 🌐
- Industry P/E at 29.0 suggests sector trades at premium valuations.
- Pharmaceutical sector benefits from global demand and regulatory support.
Conclusion 📝
Glenmark is consolidating below its 50 DMA with bearish MACD and weak RSI, suggesting short-term downside pressure. Entry near ₹1,880–₹1,920 offers margin of safety, while exits around ₹2,050–₹2,100 provide profit-taking opportunities. Fundamentally supported by PAT growth and low debt, but weak ROE/ROCE and stretched valuations limit upside. 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 Glenmark against pharma peers like Cipla, Dr. Reddy’s, Sun Pharma) so you can evaluate relative strength and sector rotation opportunities?