Current Rating and Its Significance
MarketsMOJO currently assigns Glenmark Pharmaceuticals Ltd. a 'Buy' rating, indicating a positive outlook for the stock based on a comprehensive evaluation of its quality, valuation, financial trend, and technical indicators. This rating suggests that investors may consider accumulating shares, expecting favourable returns relative to the broader market and sector peers. The rating was adjusted on 31 January 2026, reflecting a recalibration of the company’s overall mojo score, which now stands at 71.0, down from 85.0 previously.
Quality Assessment
As of 11 February 2026, Glenmark Pharmaceuticals maintains a strong quality grade, classified as 'good' by MarketsMOJO. This assessment is underpinned by the company’s robust operational metrics and financial health. Notably, Glenmark exhibits a low Debt to EBITDA ratio of 0.89 times, signalling a strong ability to service its debt obligations without undue strain. This conservative leverage profile enhances the company’s resilience against economic fluctuations and supports sustainable growth.
Valuation Perspective
The stock’s valuation is currently deemed 'attractive', reflecting a favourable price relative to its intrinsic worth and sector benchmarks. Glenmark trades at a Price to Book Value of 5.8, which, while elevated, is considered reasonable given the company’s strong return on equity (ROE) of 23.5%. This valuation discount compared to peers’ historical averages offers investors a compelling entry point, especially in light of the company’s impressive profit growth trajectory.
Financial Trend and Performance
The financial trend for Glenmark Pharmaceuticals is rated 'positive', supported by recent results and growth indicators. The latest six-month data ending December 2025 reveals net sales of ₹9,947.49 crores, representing a robust growth rate of 45.83%. Profit after tax (PAT) for the same period surged to ₹2,026.77 crores, marking a remarkable increase of 890.4% over the past year. The company’s return on capital employed (ROCE) stands at an impressive 35.65%, highlighting efficient capital utilisation. Over the past year, the stock has delivered a total return of 36.12%, underscoring strong market performance aligned with fundamental improvements.
Technical Outlook
From a technical standpoint, Glenmark Pharmaceuticals is rated as 'mildly bullish'. The stock has demonstrated resilience with a one-day gain of 0.91% and a three-month return of 8.58%, despite some short-term volatility such as a 1.64% decline over the past month. The mild bullishness suggests a positive momentum that may continue, supported by institutional investor confidence, which currently stands at a substantial 39.33%. Institutional holdings often reflect deeper fundamental analysis and can provide stability to the stock price.
Investor Implications
For investors, the 'Buy' rating on Glenmark Pharmaceuticals Ltd. signals a stock with solid fundamentals, attractive valuation, and positive growth prospects. The company’s strong financial health and operational efficiency reduce downside risks, while its valuation and technical indicators suggest potential for capital appreciation. Investors should consider this rating as part of a diversified portfolio strategy, recognising that the pharmaceutical sector can be influenced by regulatory developments and market dynamics.
Sector and Market Context
Operating within the Pharmaceuticals & Biotechnology sector, Glenmark is positioned as a midcap company with significant growth potential. The sector remains a key focus area for investors seeking exposure to healthcare innovation and demographic-driven demand. Glenmark’s mojo score places it among the top 1% of all 4,000 stocks rated by MarketsMOJO, reflecting its strong competitive standing and operational excellence.
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Summary of Key Metrics as of 11 February 2026
The latest data highlights Glenmark’s strong operational and financial position:
- Net sales for the latest six months: ₹9,947.49 crores, growing at 45.83%
- Profit after tax (PAT) for the latest six months: ₹2,026.77 crores, up 890.4% year-on-year
- Return on capital employed (ROCE): 35.65%
- Return on equity (ROE): 23.5%
- Price to Book Value: 5.8, indicating an attractive valuation relative to peers
- Debt to EBITDA ratio: 0.89 times, reflecting low leverage
- Institutional holdings: 39.33%, signalling strong institutional confidence
- Stock returns over one year: +36.12%
Conclusion
Glenmark Pharmaceuticals Ltd.’s current 'Buy' rating by MarketsMOJO is supported by a combination of strong quality metrics, attractive valuation, positive financial trends, and a mildly bullish technical outlook. Investors looking for exposure in the pharmaceuticals sector may find Glenmark’s stock appealing due to its solid fundamentals and growth potential. The company’s ability to generate substantial profits while maintaining prudent financial management makes it a noteworthy candidate for inclusion in a growth-oriented portfolio.
While the rating was updated on 31 January 2026, the comprehensive analysis presented here reflects the stock’s position as of 11 February 2026, ensuring investors have the most relevant information to make informed decisions.
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