Glenmark Life Sciences Limited
Glenmark Life Sciences Limited Fundamental Analysis
Glenmark Life Sciences Limited (GLS.NS) shows moderate financial fundamentals with a PE ratio of 28.26, profit margin of 20.62%, and ROE of 21.07%. The company generates $22.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.9/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze GLS.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGLS.NS demonstrates superior asset utilization.
Valuation Score
WeakGLS.NS trades at a premium to fair value.
Growth Score
ModerateGLS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentGLS.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentGLS.NS achieves industry-leading margins.
Key Financial Metrics
Is GLS.NS Expensive or Cheap?
P/E Ratio
GLS.NS trades at 28.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GLS.NS's PEG of 6.55 indicates potential overvaluation.
Price to Book
The market values Glenmark Life Sciences Limited at 5.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.80 times EBITDA. This signals the market has high growth expectations.
How Well Does GLS.NS Make Money?
Net Profit Margin
For every $100 in sales, Glenmark Life Sciences Limited keeps $20.62 as profit after all expenses.
Operating Margin
Core operations generate 39.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.07 in profit for every $100 of shareholder equity.
ROA
Glenmark Life Sciences Limited generates $16.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Glenmark Life Sciences Limited produces operating cash flow of $4.14B, showing steady but balanced cash generation.
Free Cash Flow
Glenmark Life Sciences Limited generates strong free cash flow of $2.85B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $23.22 in free cash annually.
FCF Yield
GLS.NS converts 2.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How GLS.NS Stacks Against Its Sector Peers
| Metric | GLS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.26 | 28.96 | Neutral |
| ROE | 21.07% | 716.00% | Weak |
| Net Margin | 20.62% | -46137.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.35 | Strong (Low Leverage) |
| Current Ratio | 4.37 | 4.52 | Strong Liquidity |
| ROA | 16.52% | -17407.00% (disorted) | Strong |
GLS.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Glenmark Life Sciences Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation