GLENMARK - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | GLENMARK | Market Cap | 61,590 Cr. | Current Price | 2,184 ₹ | High / Low | 2,298 ₹ |
| Stock P/E | 41.5 | Book Value | 848 ₹ | Dividend Yield | 0.11 % | ROCE | 9.72 % |
| ROE | 7.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,068 ₹ | DMA 200 | 1,917 ₹ |
| Chg in FII Hold | -1.53 % | Chg in DII Hold | 1.48 % | PAT Qtr | 426 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 58.3 | MACD | 46.4 | Volume | 9,04,866 | Avg Vol 1Wk | 7,58,551 |
| Low price | 1,336 ₹ | High price | 2,298 ₹ | PEG Ratio | 20.8 | Debt to equity | 0.02 |
| 52w Index | 88.2 % | Qtr Profit Var | 3.00 % | EPS | 0.74 ₹ | Industry PE | 27.6 |
📊 Chart & Trend: GLENMARK is trading at ₹2,184, above both its 50 DMA (₹2,068) and 200 DMA (₹1,917), showing strong upward momentum. RSI at 58.3 suggests bullish strength but nearing overbought territory. MACD (46.4) is positive, confirming bullish momentum. Bollinger Bands show price near the upper band, signaling strong buying interest but also caution for potential pullback.
📈 Momentum Signals: Volume (9.04L) is higher than the 1-week average (7.58L), indicating strong participation. RSI above 55 supports bullish momentum, while MACD confirms trend continuation.
💡 Entry Zone: ₹2,120–₹2,160 (support zone).
🚪 Exit Zone: ₹2,250–₹2,290 (resistance). A breakout above ₹2,298 (recent high) could open room toward ₹2,350.
📌 Trend Status: The stock is currently trending upward after a strong rally from ₹1,336 to ₹2,298, supported by bullish indicators.
Positive
- Strong price momentum above both 50 DMA and 200 DMA.
- Quarterly PAT growth (₹426 Cr vs ₹193 Cr) shows significant earnings improvement.
- DII holdings increased (+1.48%), signaling domestic institutional confidence.
- Low debt-to-equity (0.02) ensures financial stability.
Limitation
- ROCE (9.72%) and ROE (7.35%) are relatively weak compared to sector leaders.
- PEG ratio of 20.8 suggests expensive valuation relative to growth.
- Dividend yield (0.11%) is very low, limiting income appeal.
Company Negative News
- Decline in FII holdings (-1.53%) indicates reduced foreign investor confidence.
- EPS at ₹0.74 is weak despite strong market cap, raising valuation concerns.
Company Positive News
- Quarterly profit growth of 3% supports earnings stability.
- Strong rally in stock price with 52-week index gain of 88.2% highlights investor optimism.
- Book value of ₹848 provides margin of safety.
Industry
- Pharmaceutical sector enjoys steady demand and global growth opportunities.
- Industry PE (27.6) is lower than GLENMARK’s P/E (41.5), suggesting premium valuation.
- Peers trade at moderate valuations, positioning GLENMARK as a momentum-driven play.
Conclusion
⚖️ GLENMARK is trending upward with strong bullish signals (positive MACD, RSI above 55, price above DMAs). Fundamentals show mixed strength—earnings growth and book value are positives, but ROCE/ROE and EPS are weak. Entry near ₹2,120–₹2,160 offers a margin of safety, with exits around ₹2,250–₹2,290. Long-term investors should be cautious of valuation risks, while traders can ride the momentum with tight stop-losses near support levels.
Selva, would you like me to extend this into a peer benchmarking overlay against pharma majors like Cipla, Dr. Reddy’s, and Lupin? That would highlight relative strength and sector rotation opportunities alongside Glenmark.