Glaxosmi. Pharma (GLAXO)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Glaxosmi. Pharma as a quality franchise, not a bargain. The business earns exceptional returns: ROE 52.32%, ROCE 63.25%, debt/equity 0.01, Piotroski 8/9 and Altman Z 8.79. That tells me it has a moat—branded pharma, an MNC parent and pricing power—and a fortress balance sheet. The latest quarter shows sales of ₹1,041 Cr and net profit of ₹296 Cr, implying strong margins, while free cash flow of ₹1,244 Cr and a 2.12% dividend yield are shareholder-friendly. Promoter holding of 75% aligns interests. Growth is steady: sales up 10.59%, profit up 15.87%, but the five-year revenue CAGR of just 3.06% means this is not a fast grower. Valuation is the rub. At ₹2,688.80, with market cap ₹45,550 Cr, P/E 42.73, P/B 20.09 and PEG 2.54, the market already pays dearly for quality. The Graham Number is ₹395.22, leaving a margin of safety of -550.67%—deeply negative on asset-based terms. DCF intrinsic value of ₹3,376.45 is above the price, offering some comfort, but I weigh Graham's caution: a wonderful business can still be a poor investment at too high a price. The negative EV/EBITDA of -70.46 also needs understanding. With five-year revenue growth slow, I would demand a wider discount. This is a stalwart: high quality, low debt, cash-generative, but priced for near-perfection. I would watch it, not chase it; buy only on meaningful price weakness or evidence of faster growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer