Current Rating and Its Significance
The 'Strong Buy' rating assigned to Glenmark Pharmaceuticals Ltd. indicates a highly favourable outlook based on a comprehensive evaluation of the company's quality, valuation, financial trend, and technical indicators. This rating suggests that the stock is expected to outperform the broader market and offers attractive potential returns for investors willing to hold the stock over the medium to long term.
It is important to note that while the rating was updated on 18 Nov 2025, all the fundamentals, returns, and financial metrics referenced below are as of 28 December 2025, ensuring that investors have the most up-to-date information to make informed decisions.
Quality Assessment
Glenmark Pharmaceuticals currently holds a 'good' quality grade, reflecting robust operational and financial health. The company demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.89 times, signalling prudent financial management and limited leverage risk. This low leverage enhances the company's resilience against economic fluctuations and interest rate changes.
Moreover, Glenmark's recent quarterly results have been outstanding, with net profit growth surging by an impressive 1199.62%. Net sales for the quarter reached ₹6,046.87 crores, marking an 81.3% increase compared to the previous four-quarter average. Such growth underscores the company's operational efficiency and market demand strength.
The return on capital employed (ROCE) for the half-year stands at a remarkable 35.65%, indicating excellent utilisation of capital to generate profits. Additionally, the operating profit to interest ratio of 35.50 times highlights the company's strong earnings relative to its interest obligations, further reinforcing its financial stability.
Valuation Perspective
From a valuation standpoint, Glenmark Pharmaceuticals is rated 'attractive'. The stock trades at a Price to Book Value of 5.9, which, while seemingly elevated, is justified by the company's superior return on equity (ROE) of 23.5%. This ROE level indicates efficient use of shareholders' funds to generate profits.
Importantly, the stock is currently trading at a discount relative to its peers' historical valuations, offering investors a compelling entry point. The price-to-earnings-to-growth (PEG) ratio stands at a low 0.1, signalling that the stock's price growth potential is significantly undervalued compared to its earnings growth rate. This combination of strong profitability and reasonable valuation supports the 'Strong Buy' recommendation.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Performance
The financial trend for Glenmark Pharmaceuticals is rated 'outstanding', reflecting strong growth and consistent returns. As of 28 December 2025, the stock has delivered a year-to-date return of 25.26% and a one-year return of 30.44%, outperforming the BSE500 index in each of the last three annual periods. This consistent outperformance highlights the company's ability to generate shareholder value over time.
Profit growth has been particularly notable, with a rise of 554.2% over the past year. This exceptional growth rate is a key driver behind the stock's strong returns and underpins the positive outlook. Institutional investors hold a significant 39.38% stake in the company, with their holdings increasing by 1.08% over the previous quarter. This rising institutional interest often signals confidence in the company's fundamentals and future prospects.
Technical Analysis
Technically, Glenmark Pharmaceuticals is rated 'bullish'. The stock has shown positive momentum with a one-month gain of 4.91% and a six-month gain of 16.63%. The recent price movement suggests strong investor interest and buying pressure, which supports the sustainability of the current uptrend.
Despite a minor one-day decline of 0.21% as of 28 December 2025, the overall technical indicators remain favourable. This bullish technical stance complements the strong fundamental and valuation metrics, reinforcing the stock's appeal to investors seeking growth opportunities in the Pharmaceuticals & Biotechnology sector.
Sector and Market Context
Operating within the Pharmaceuticals & Biotechnology sector, Glenmark Pharmaceuticals benefits from favourable industry dynamics, including increasing demand for healthcare products and innovation in drug development. As a midcap company, it offers a blend of growth potential and relative stability compared to smaller peers.
The company's Mojo Score of 90.0, a significant improvement from its previous score of 65, reflects the comprehensive strength across multiple evaluation parameters. This score places Glenmark firmly in the 'Strong Buy' category, signalling to investors that the stock is well-positioned for future appreciation.
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What This Rating Means for Investors
For investors, the 'Strong Buy' rating on Glenmark Pharmaceuticals Ltd. suggests a compelling opportunity to add a fundamentally sound and technically strong stock to their portfolio. The combination of attractive valuation, outstanding financial performance, and positive technical momentum indicates that the stock is likely to deliver superior returns relative to the broader market.
Investors should consider the company's strong growth trajectory, robust profitability metrics, and prudent financial management when evaluating their investment decisions. The high institutional ownership further adds a layer of confidence, as these investors typically conduct thorough due diligence before increasing their stakes.
While no investment is without risk, Glenmark's current profile as of 28 December 2025 positions it favourably within the Pharmaceuticals & Biotechnology sector, making it a stock worth close attention for those seeking growth and stability.
Summary
In summary, Glenmark Pharmaceuticals Ltd. is rated 'Strong Buy' by MarketsMOJO, with the rating updated on 18 Nov 2025. The latest data as of 28 December 2025 confirms the company's strong fundamentals, attractive valuation, excellent financial trend, and bullish technical outlook. These factors collectively support the positive recommendation and highlight the stock's potential as a valuable addition to investor portfolios.
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