Glenmark Pharmaceuticals Ltd. is Rated Buy

Current Rating and Its Significance

MarketsMOJO’s 'Buy' rating for Glenmark Pharmaceuticals Ltd. indicates a positive outlook on the stock, suggesting it is expected to outperform the broader market over the medium term. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. While the rating was adjusted from 'Strong Buy' to 'Buy' on 31 January 2026, the current assessment remains favourable, reflecting a solid investment case supported by strong fundamentals and market positioning.

Quality Assessment

As of 23 February 2026, Glenmark Pharmaceuticals maintains a 'good' quality grade. This reflects the company’s robust operational efficiency and financial health. Notably, the company demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.89 times, indicating prudent leverage management. Additionally, Glenmark’s return on capital employed (ROCE) for the half-year period stands at an impressive 35.65%, underscoring efficient utilisation of capital to generate profits. The return on equity (ROE) is also attractive at 23.5%, signalling effective management in delivering shareholder value.

Valuation Perspective

The valuation grade for Glenmark Pharmaceuticals is currently 'attractive'. The stock trades at a price-to-book value of 6, which, while seemingly elevated, is justified by the company’s strong growth prospects and profitability metrics. Importantly, the stock is trading at a discount relative to its peers’ historical valuations, offering investors a compelling entry point. The company’s PEG ratio is effectively zero, reflecting exceptional profit growth relative to its price appreciation. Over the past year, Glenmark has delivered a remarkable 56.52% return, while profits have surged by 890.4%, highlighting the stock’s strong earnings momentum.

Financial Trend and Performance

The financial trend for Glenmark Pharmaceuticals is rated 'positive', supported by recent results and growth indicators. The latest six-month period ending December 2025 saw net sales reach ₹9,947.49 crores, growing at an impressive rate of 45.83%. Profit after tax (PAT) for the same period rose to ₹2,026.77 crores, reflecting strong bottom-line expansion. These figures demonstrate the company’s ability to sustain growth in a competitive pharmaceutical and biotechnology sector. Institutional investors hold a significant 39.33% stake in the company, signalling confidence from knowledgeable market participants who typically conduct rigorous fundamental analysis.

Technical Outlook

From a technical standpoint, Glenmark Pharmaceuticals is rated 'bullish'. The stock has shown consistent upward momentum, with recent returns of +0.14% on the day, +0.74% over the past week, and +3.84% in the last month. Over three months, the stock has gained 10.91%, and over six months, it has appreciated by 5.67%. Year-to-date returns stand at +0.52%, reinforcing the positive trend. This technical strength supports the fundamental case, suggesting continued investor interest and potential for further gains.

Market Position and Ranking

Glenmark Pharmaceuticals is a midcap company within the Pharmaceuticals & Biotechnology sector and is recognised as one of the top performers in the market. It ranks 12th among midcap stocks and 49th across the entire market universe of over 4,000 stocks rated by MarketsMOJO. This places Glenmark in the highest 1% of companies evaluated, reflecting its strong overall standing and investment appeal.

Implications for Investors

For investors, the 'Buy' rating on Glenmark Pharmaceuticals suggests a favourable risk-reward profile. The company’s strong fundamentals, attractive valuation, positive financial trends, and bullish technical indicators combine to present a compelling investment opportunity. While the rating is one notch below 'Strong Buy', it still reflects confidence in the company’s ability to deliver sustainable returns. Investors should consider Glenmark as a core holding within the pharmaceuticals and biotechnology sector, particularly given its robust growth metrics and solid market positioning.

Sector Context and Outlook

The Pharmaceuticals & Biotechnology sector continues to be a key driver of growth in the Indian equity market, supported by increasing domestic demand and expanding export opportunities. Glenmark Pharmaceuticals, with its strong sales growth and profitability, is well positioned to capitalise on these sector tailwinds. The company’s ability to maintain low leverage and generate high returns on capital further enhances its resilience amid market fluctuations.

Summary

In summary, Glenmark Pharmaceuticals Ltd. is rated 'Buy' by MarketsMOJO as of the latest update on 31 January 2026. The current analysis as of 23 February 2026 confirms that the stock exhibits strong quality, attractive valuation, positive financial trends, and bullish technicals. These factors collectively support the recommendation for investors seeking exposure to a well-managed, growth-oriented pharmaceutical company with solid market credentials.

Key Metrics at a Glance (As of 23 February 2026)

• Mojo Score: 78.0 (Buy Grade)
• Market Capitalisation: Midcap
• Debt to EBITDA Ratio: 0.89 times
• Net Sales (Latest 6 months): ₹9,947.49 crores (Growth 45.83%)
• PAT (Latest 6 months): ₹2,026.77 crores
• ROCE (Half Year): 35.65%
• ROE: 23.5%
• Price to Book Value: 6
• 1-Year Stock Return: +56.52%
• Institutional Holdings: 39.33%

Conclusion

Glenmark Pharmaceuticals remains a noteworthy contender in the midcap pharmaceutical space, combining strong operational metrics with a favourable market outlook. The 'Buy' rating reflects a balanced view of the company’s current strengths and growth potential, making it a stock worthy of consideration for investors aiming to capitalise on the evolving dynamics of the healthcare sector.

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