Should You Hold or Sell Glenmark Pharmaceuticals? A Comprehensive Guide
The ongoing fluctuations in the stock market, particularly with companies like Glenmark Pharmaceuticals, can often leave investors in a dilemma. Many are debating whether to sell Glenmark Pharmaceuticals or hold it, especially given its recent price movements and the upcoming Q1 financial results. Let's explore the current scenario and future outlook to provide you with a clearer direction.
Current Stock Performance and Upcoming Q1 Results
As of now, Glenmark Pharmaceuticals has seen a significant dip from its previous purchase price of 495, currently trading at around 420. Analysts predict that if the stock closes above 895, it will experience a strong upward movement. However, if it does not, it is expected to touch the 612 level and then move upside.
The next significant event for Glenmark Pharmaceuticals is the Q1 quarter results, which are set to be announced on August 14. Considering the anticipation for positive results, investors are advised to hold the stock for at least one more day before making any decisions. According to market analysts, the results are expected to be good, presenting a buying opportunity during any dips.
The rise from around 425 odd levels to 520 odd levels in the first week of July was due to news-based buying. Although this was expected to fizzle out due to several ambiguous factors, the current situation of gold scarcity may lead to continued upward momentum for this stock, especially when considering its P/E ratio.
Buy and Hold Strategy
Buying and holding strategies for Glenmark Pharmaceuticals are highly recommended. If you choose to hold the stock, you stand to gain handsome returns within about 6 months. The stock is considered a buy and hold stock. It is crucial to wait and watch while remaining patient to realize these returns.
The stock is approaching its demand levels, and it’s advisable to hold as this level has not been violated yet. If the stock turns around, one might even find it a good opportunity to add more. Investors often make the mistake of buying at higher prices while the stock is in its declining phase. Timing is key, and learning technical analysis can provide better insights into making such decisions.
Risk and Future Outlook
While holding has several advantages, it's essential to consider the risk factors. Recently, the US FDA imposed a fine on the company, which may lead to a further decline in the stock price to below 400 levels. However, once these issues are resolved, the stock is expected to recover and start picking up in the long-term.
Given the current scenario, it’s recommended to hold the stock for a medium to long-term period. This strategy not only allows investors to capitalize on the potential upside but also provides safety against short-term fluctuations.
Remember, the stock market is inherently unpredictable, and past performance is not indicative of future results. Always do thorough research and consider consulting with a financial advisor before making any investment decisions.