Outperformance Against Benchmarks and Sector
Glenmark Pharmaceuticals has demonstrated remarkable resilience and growth in recent periods. Over the past week, the stock appreciated by 1.80%, contrasting with the Sensex’s decline of 1.47%. This trend extends over longer durations, with the stock gaining 5.29% in the last month compared to the Sensex’s modest 0.84% rise. Year-to-date, Glenmark has advanced 1.92%, while the benchmark index has fallen by 3.51%. The stock’s one-year return of 56.56% significantly outpaces the Sensex’s 10.44%, underscoring its strong momentum and investor confidence.
On the day in question, Glenmark outperformed its sector by 1.72%, further highlighting its relative strength. The stock is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a robust technical position and sustained buying interest despite a slight dip in delivery volume, which fell by 17.54% against the five-day average on 23 Feb.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Strong Financial Fundamentals Driving Investor Confidence
The company’s financial results for the latest six months ending December 2025 have been particularly encouraging. Net sales surged to ₹9,947.49 crores, reflecting a robust growth rate of 45.83%. Profit after tax (PAT) also rose substantially to ₹2,026.77 crores, signalling strong operational efficiency and profitability. Glenmark’s return on capital employed (ROCE) for the half-year stands at an impressive 35.65%, indicating effective utilisation of capital to generate earnings.
Further enhancing its appeal, Glenmark maintains a low debt-to-EBITDA ratio of 0.89 times, underscoring its strong ability to service debt and maintain financial stability. The company’s return on equity (ROE) of 23.5% combined with a price-to-book value of 6.1 suggests an attractive valuation, especially as the stock trades at a discount relative to its peers’ historical averages. Notably, the company’s profits have surged by 890.4% over the past year, while the PEG ratio remains at zero, indicating that earnings growth is outpacing price increases and potentially signalling undervaluation.
Institutional investors hold a significant 39.33% stake in Glenmark, reflecting confidence from sophisticated market participants who typically conduct rigorous fundamental analysis. This institutional backing often provides stability and supports sustained price appreciation.
Consistent Long-Term Outperformance
Glenmark’s performance over the medium to long term has been exceptional. Over three years, the stock has delivered a staggering 373.53% return, vastly outperforming the Sensex’s 38.28% gain. Over five years, the stock’s 344.90% return similarly dwarfs the benchmark’s 61.92%. This consistency in delivering superior returns has positioned Glenmark among the top-rated companies, ranked 12th among mid-cap stocks and 50th across the entire market by MarketsMojo, placing it in the highest 1% of over 4,000 stocks analysed.
Thinking about Glenmark Pharma? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this Midcap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Conclusion: Why Glenmark’s Stock is Rising
The rise in Glenmark Pharmaceuticals’ share price on 24-Feb is supported by a confluence of strong financial results, attractive valuation metrics, and consistent outperformance relative to benchmarks and peers. The company’s robust sales growth, substantial profit increase, and high returns on capital have bolstered investor sentiment. Additionally, the stock’s technical strength, evidenced by trading above all major moving averages, and significant institutional ownership further reinforce confidence in its prospects.
While delivery volumes have seen a slight decline, liquidity remains sufficient to support sizeable trades, indicating that the stock remains accessible to investors. Overall, Glenmark’s combination of solid fundamentals, favourable valuation, and sustained market leadership explains the positive momentum in its share price, making it a compelling consideration for investors seeking growth in the pharmaceutical sector.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
