Glenmark Pharmaceuticals Ltd. (GLENMARK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Glenmark Pharma

Laurus Labs

Aurobindo Pharma

Alkem Lab

Ipca Labs

Biocon

Zydus Lifesci.

Abbott India

Mankind Pharma

Glaxosmi. Pharma

Anthem Bioscienc

Why is Glenmark Pharmaceuticals Ltd. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.89 times

With a growth in Net Profit of 1199.62%, the company declared Outstanding results in Sep 25

ROCE(HY) Highest at 35.65%
OPERATING PROFIT TO INTEREST(Q) Highest at 35.50 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 2,690.24 cr

With ROE of 23.5, it has a Attractive valuation with a 5.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.97%, its profits have risen by 554.2% ; the PEG ratio of the company is 0

High Institutional Holdings at 39.38%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.08% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 26.97% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Glenmark Pharma should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Glenmark Pharma for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Glenmark Pharma

26.97%

0.86

31.53%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.12%

EBIT Growth (5y)

19.22%

EBIT to Interest (avg)

6.28

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.06

Tax Ratio

33.88%

Dividend Payout Ratio

6.74%

Pledged Shares

Institutional Holding

39.38%

ROCE (avg)

16.69%

ROE (avg)

10.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.79

EV to EBIT

15.08

EV to EBITDA

13.17

EV to Capital Employed

6.65

EV to Sales

3.38

PEG Ratio

0.04

Dividend Yield

0.25%

ROCE (Latest)

44.14%

ROE (Latest)

23.46%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

37What is working for the Company

ROCE(HY)

Highest at 35.65%

OPERATING PROFIT TO INTEREST(Q)

Highest at 35.50 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 2,690.24 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.13 times

NET SALES(Q)

Highest at Rs 6,046.87 cr

PBDIT(Q)

Highest at Rs 2,359.55 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 39.02%

PBT LESS OI(Q)

Highest at Rs 2,151.89 cr.

PAT(Q)

Highest at Rs 1,484.36 cr.

EPS(Q)

Highest at Rs 21.63

-5What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -827.60 Cr

INTEREST(9M)

At Rs 191.40 cr has Grown at 36.37%

Loading Valuation Snapshot...

Here's what is working for Glenmark Pharma

Net Sales - Quarterly

At Rs 6,046.87 cr has Grown at 81.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 3,335.50 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,151.89 cr has Grown at 431.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 404.96 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,484.36 cr has Grown at 431.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 279.35 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 35.50 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 6,046.87 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 2,359.55 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 39.02%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2,151.89 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,484.36 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 21.63

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 2,690.24 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.13 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Glenmark Pharma

Operating Cash Flow - Annually

Lowest at Rs -827.60 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Nine Monthly

At Rs 191.40 cr has Grown at 36.37%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 200.63 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income