Glenmark Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹2,226.70−₹23.80 (−1.06%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity.

In simple words: Strong business and financial position, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Glenmark Pharmaceuticals Limited, together with its subsidiaries, research, develops, manufactures, and sells generics, specialty medicines, and over the counter (OTC) pharmaceutical products in India, North America, Europe, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees16,946

Annual revenue₹16,711 Cr

How does it make money?

Turns over ₹16,711 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 16,946 employees supports ₹98.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.6 lakh

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?Some evidence

ROCE of 16.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What is the outlook?

10 analysts covering the stock expect revenue to grow about 10.5% and earnings to grow about 23.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.5%

Est. earnings growth+23.1%

Analysts10

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +46% while net margin moved +213% 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+46%

Margin effect+213%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.25 — historically steadier than the index
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

69/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

35.0x

3Y Median

81.2x

40 monthly readings · mean 95.2x · range 46.2x–202.7x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 81.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

81.2x median over 40 months · -57%

vs. sector peers

Fair

33.3x median of 4 peers · +5%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.3x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 17.3% to 30.3% over 3 years.
Debt is being paid down
Total debt is down 87% over 3 years.
Cash generation is improving
Free cash flow is up 11740% over 3 years.
Return on equity is rising
ROE has improved from 3.1% to 13.0%.
Return on capital is rising
ROCE has improved from 4.1% to 16.2%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 5.65x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 17.3% to 30.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 87% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.65x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

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

1Revenue growth stays above 10% a year✓ 13.5% CAGR
Latest reported year was 23.1%. 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✓ ₹2,087 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 13%✓ 16.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹62,843 Cr

Mid Cap

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

P/E (Trailing)

35.0x

Fair

Fairly valued against the generic band

P/B Ratio

5.98x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹63.69

Profitable

Profitable on a per-share basis

ROE

13.0%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.65x

High

High leverage

Revenue Growth (YoY)

23.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

930.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.11%

Modest

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

Free Cash Flow

₹2,087 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.0x

Improving

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

Operating Margin

15.7%

Good

Healthy core-business profitability

Net Margin

10.1%

Good

Strong bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2336.1 / 2363.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11,432 Cr	₹11,635 Cr	₹13,146 Cr	₹16,711 Cr	+13.5%
EBITDA	₹1,973 Cr	₹2,100 Cr	₹2,468 Cr	₹5,057 Cr	+36.8%
EBITDA Margin	17.3%	18.1%	18.8%	30.3%	—
PAT (Net Profit)	₹297 Cr	-₹1,502 Cr	₹1,047 Cr	₹1,362 Cr	+66.1%
EPS	₹10.53	₹-53.22	₹37.11	₹48.24	+66.1%
ROE	3.1%	-19.1%	11.8%	13.0%	—
ROCE	4.1%	6.5%	15.9%	16.2%	—
Total Debt	₹4,608 Cr	₹1,231 Cr	₹2,473 Cr	₹594 Cr	-49.5%
Free Cash Flow	₹18 Cr	-₹1,164 Cr	-₹1,578 Cr	₹2,087 Cr	+391.0%

🟢 Revenue has grown at 13.5% a year over 3 years.

🟢 EBITDA has grown at 36.8% a year over 3 years.

🟢 EBITDA Margin has risen from 17.3% to 30.3% over 3 years (+13.0 pts).

🟢 PAT (Net Profit) has grown at 66.1% a year over 3 years.

🟢 EPS has grown at 66.1% a year over 3 years.

🟢 ROE has risen from 3.1% to 13.0% over 3 years (+9.8 pts).

🟢 ROCE has risen from 4.1% to 16.2% over 3 years (+12.1 pts).

🟢 Total Debt has shrunk at 49.5% a year over 3 years.

🟢 Free Cash Flow has grown at 391.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19,908 Cr

Total Liabilities

₹9,396 Cr

Cash & Equivalents

₹1,175 Cr

Operating Cash Flow

₹3,445 Cr

Capex

-₹1,358 Cr

Shareholding (proxy)

Institutional Holding

27.0%

Insider Holding

49.0%

Corporate Actions

Next Earnings

30 Oct 2026

Dividend Rate

₹2.5

Ex-Dividend Date

31 Aug 2026

Analyst Consensus

Recommendations

10 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹2,512.82

+12.8% vs CMP

Target Range

₹2,100 – ₹2,750

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

1 positive2 mixed3 general

Glenmark Pharmaceuticals Launches GLIPIQ® (Semaglutide) in India with Weekly Treatment Starting at ₹325

scanx.trade, 18 Oct

Glenmark Pharmaceuticals Share Price Fall: Key Trade Facts

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Glenmark Pharmaceuticals Limited (NSE:GLENMARK) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 27 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Glenmark Pharma Shares Fall 2.18% in Early Trade Amidst Bearish Sentiment

Moneycontrol.com, 03 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Glenmark Pharma jumps over 2% on launch of Olanzapine single-dose vial

Business Standard, 06 Jul

Glenmark Pharma Holds Near ₹2,470 as Stock Consolidates Within Defined Range - Charm Flow

siam.in, 01 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑