Glenmark Pharma. (GLENMARK)

FairStock Score: 41/100 — MIXED

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

Key Financials

AI Analysis

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

I wear Graham’s skeptical glasses and Buffett’s long-term lens. At ₹2318.40, Glenmark’s ₹65,431 Cr market cap already reflects a lot of hope. The latest quarter—sales ₹3,901 Cr and net profit ₹403 Cr—and profit growth of 930.70% look spectacular, but such a jump often comes off a depressed base. The five-year revenue CAGR of just 4.60% tells me the business has not compounded consistently, so I would not call it a durable fast grower yet. What I like is the balance sheet: debt/equity of 0.06, Altman Z-score 4.74, Piotroski F-score 7/9, ROCE 19.40%, and ROE 12.04%. That suggests solvency and reasonable capital efficiency, not a fragile enterprise. Promoter holding of 46.65% also aligns interests. But the price is the problem. The Graham Number is ₹516.03, yet the stock trades at ₹2318.40, leaving a margin of safety of -314.07%. P/E is 36.36, P/B is 6.22, EV/EBITDA is 27.84, and PEG is 1.61—rich for a company with only 4.60% five-year revenue CAGR. Free cash flow is negative ₹770 Cr, and dividend yield is only 0.32%, so shareholders are relying on future earnings rather than current cash returns. FairStock’s 41/100 mixed score confirms the ambiguity. If the profit rebound is real and cash flow inflects, today’s valuation may be justified; otherwise, I see a turnaround priced like a stalwart. I would wait for evidence, not pay for hope.

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