Gland Pharma Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹3,035.00−₹31.30 (−1.02%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of Gland Pharma Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gland Pharma Limited engages in manufacturing and sale of injectable formulations in India, the United States, Europe, Canada, Australia, New Zealand, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees4,332

Annual revenue₹6,403 Cr

How does it make money?

Turns over ₹6,403 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 4,332 employees supports ₹1.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.48 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 14.5% and earnings to grow about 20.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.5%

Est. earnings growth+20.5%

Analysts14

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +78% while net margin moved -26% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+78%

Margin effect-26%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 44.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 40.0x

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.3x

3Y Median

40.0x

40 monthly readings · mean 41.0x · range 29.9x–59.0x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 11% above its 3y median of 40.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 33% above the peer median of 33.3x.

vs. its own history

Fair

40.0x median over 40 months · +11%

vs. sector peers

Expensive

33.3x median of 4 peers · +33%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.2x

PEG

4.63

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 281% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 6269% over 3 years, from ₹4 Cr to ₹284 Cr.
🔴High leverageFinancial
Debt/Equity of 2.74x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 4.6 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 117% against revenue up 78% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.9% to 30.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.74x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 117% against revenue up 78%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 33% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.3% CAGR
Latest reported year was 19.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 30.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹537 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹50,081 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

44.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.83x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹68.47

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.74x

High

High leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.66%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹537 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

21.0%

Good

Healthy core-business profitability

Net Margin

16.8%

Good

Strong bottom-line conversion

Current Ratio

4.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

2987.2 / 2916.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,592 Cr	₹5,642 Cr	₹5,584 Cr	₹6,403 Cr	+21.3%
EBITDA	₹1,253 Cr	₹1,503 Cr	₹1,476 Cr	₹1,939 Cr	+15.7%
EBITDA Margin	34.9%	26.6%	26.4%	30.3%	—
PAT (Net Profit)	₹781 Cr	₹772 Cr	₹699 Cr	₹1,027 Cr	+9.6%
EPS	₹47.43	₹46.89	₹42.4	₹62.28	+9.5%
ROE	9.8%	8.9%	7.6%	9.9%	—
ROCE	13.2%	12.5%	11.4%	13.7%	—
Total Debt	₹4 Cr	₹372 Cr	₹314 Cr	₹284 Cr	+299.3%
Free Cash Flow	₹141 Cr	₹599 Cr	₹521 Cr	₹537 Cr	+56.2%

🟢 Revenue has grown at 21.3% a year over 3 years.

🟢 EBITDA has grown at 15.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.9% to 30.3% over 3 years (-4.6 pts).

🟢 PAT (Net Profit) has grown at 9.6% a year over 3 years.

🟢 EPS has grown at 9.5% a year over 3 years.

🟡 ROE has held roughly flat at 9.9% over 3 years.

🟡 ROCE has held roughly flat at 13.7% over 3 years.

🔴 Total Debt has grown at 299.3% a year over 3 years.

🟢 Free Cash Flow has grown at 56.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,511 Cr

Total Liabilities

₹2,153 Cr

Cash & Equivalents

₹3,359 Cr

Operating Cash Flow

₹1,031 Cr

Capex

-₹494 Cr

Shareholding (proxy)

Institutional Holding

37.9%

Insider Holding

51.8%

Corporate Actions

Next Earnings

03 Nov 2026

Dividend Rate

₹20

Ex-Dividend Date

11 Aug 2026

Analyst Consensus

Recommendations

10 Buy · 0 Hold · 4 Sell

Target Price (Mean)

₹2,964.36

-2.3% vs CMP

Target Range

₹1,940 – ₹3,750

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive2 mixed2 general

Gland Pharma (NSEI:GLAND) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Gland Pharma stock jumps 12%, top midcap gainer after strong Q1; Jefferies upgrades to Buy, check target...

Moneycontrol.com, 11 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Gland Pharma - 10 stocks held by 100+ MF schemes in September rally up to 205% in CY26; 6 turn multibaggers

The Economic Times, 16 Oct

Gland Pharma rallies 12%, stock hits 4-year high post Q1 results

Business Standard, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gland Pharma Jumps 12% on Strong Q1, Broker Upgrades

HDFC Sky, 11 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Gland Pharma Limited (GLAND.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑