Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Glenmark Pharmaceuticals Ltd. indicates a positive outlook on the stock, suggesting it is a favourable investment opportunity for investors seeking growth within the Pharmaceuticals & Biotechnology sector. This rating reflects a balanced assessment of the company’s quality, valuation, financial health, and technical indicators, signalling that the stock is expected to deliver returns above the market average over the medium term.
Quality Assessment: Strong Operational and Financial Health
As of 31 January 2026, Glenmark Pharmaceuticals demonstrates a robust quality profile. The company holds a 'good' quality grade, supported by its strong ability to service debt, with a low Debt to EBITDA ratio of 0.89 times. This indicates prudent financial management and a solid capital structure, reducing risk for investors.
The company’s operational efficiency is further highlighted by its outstanding recent results declared in September 2025, including a remarkable 1199.62% growth in net profit. Additionally, Glenmark’s Return on Capital Employed (ROCE) for the half-year stands at an impressive 35.65%, reflecting effective utilisation of capital to generate profits. The operating profit to interest coverage ratio is also notably high at 35.50 times, underscoring the company’s strong earnings relative to its interest obligations.
Cash reserves remain healthy, with cash and cash equivalents amounting to ₹2,690.24 crores, providing ample liquidity to support ongoing operations and potential expansion initiatives.
Valuation: Very Attractive Entry Point
Glenmark Pharmaceuticals is currently rated with a 'very attractive' valuation grade. The stock trades at a Price to Book Value ratio of 6, which, while elevated, is considered reasonable given the company’s strong growth prospects and profitability metrics. Importantly, the stock is trading at a discount relative to its peers’ average historical valuations, offering investors a compelling entry point.
The company’s Price/Earnings to Growth (PEG) ratio stands at a low 0.1, signalling that the stock’s price is undervalued relative to its earnings growth potential. Over the past year, Glenmark has delivered a total return of 39.46%, while profits have surged by 554.2%, underscoring the stock’s capacity to generate substantial shareholder value.
Financial Trend: Positive Momentum and Growth Trajectory
The financial trend for Glenmark Pharmaceuticals remains positive as of 31 January 2026. The company’s net profit growth and return ratios indicate a strong upward trajectory. Return on Equity (ROE) is currently at 23.5%, reflecting efficient use of shareholders’ funds to generate earnings.
Institutional investors hold a significant 39.33% stake in the company, which often signals confidence from sophisticated market participants who have the resources to conduct thorough fundamental analysis. This institutional backing can provide stability and support for the stock price in volatile market conditions.
Technical Outlook: Mildly Bullish Sentiment
From a technical perspective, Glenmark Pharmaceuticals holds a 'mildly bullish' grade. The stock has shown resilience and moderate upward momentum, with recent price movements reflecting investor confidence. Over the last three months, the stock has gained 7.29%, despite some short-term volatility, and it has delivered a 1-day gain of 1.72% as of 31 January 2026.
While the six-month return shows a slight decline of 6.27%, the overall trend remains constructive, supported by strong fundamentals and positive earnings growth. This technical backdrop complements the fundamental case for the stock, reinforcing the 'Buy' rating.
Market Position and Peer Comparison
Glenmark Pharmaceuticals is a midcap company within the Pharmaceuticals & Biotechnology sector, ranked third among midcap stocks and fifth across the entire market according to MarketsMOJO’s comprehensive ratings. It is positioned within the top 1% of over 4,000 stocks rated by MarketsMOJO, highlighting its exceptional standing in terms of quality and growth potential.
This strong market position, combined with attractive valuation and solid financial metrics, makes Glenmark a compelling choice for investors seeking exposure to the pharmaceutical sector’s growth story.
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Implications for Investors
For investors, the 'Buy' rating on Glenmark Pharmaceuticals Ltd. suggests that the stock is well-positioned to deliver favourable returns, supported by strong fundamentals and an attractive valuation. The company’s robust profitability, efficient capital management, and positive financial trends provide a solid foundation for future growth.
Investors should consider Glenmark as a core holding within the Pharmaceuticals & Biotechnology sector, particularly given its midcap status and strong institutional support. The mildly bullish technical outlook further supports the case for accumulation, although investors should remain mindful of sector-specific risks and broader market volatility.
Overall, Glenmark Pharmaceuticals offers a compelling blend of quality, growth, and value, making it a stock worthy of consideration for portfolios seeking exposure to the healthcare space.
Summary of Key Metrics as of 31 January 2026
- Mojo Score: 74.0 (Buy Grade)
- Market Capitalisation: Midcap
- Debt to EBITDA Ratio: 0.89 times
- Net Profit Growth (Sep 2025): 1199.62%
- ROCE (Half Year): 35.65%
- Operating Profit to Interest Coverage: 35.50 times
- Cash and Cash Equivalents: ₹2,690.24 crores
- Return on Equity (ROE): 23.5%
- Price to Book Value: 6
- PEG Ratio: 0.1
- Institutional Holdings: 39.33%
- 1-Year Stock Return: +39.46%
Conclusion
Glenmark Pharmaceuticals Ltd.’s current 'Buy' rating by MarketsMOJO reflects a well-rounded investment case grounded in strong quality, attractive valuation, positive financial trends, and supportive technical signals. Investors looking for exposure to a midcap pharmaceutical company with robust growth prospects and solid fundamentals should consider this stock as part of their portfolio strategy.
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