Piramal Enterprises - Making Efforts To Strengthen Retail, Rundown Legacy Wholesale: Motilal Oswal

Motilal Oswal Report

Our earnings estimates for FY25 and FY26 only factor in exceptional gains from Piramal Enterprises Ltd.’s AIF exposures and no tax incidence in the foreseeable future.

Because of the uncertainty and unpredictability around the timing of the monetization of its stake in Shriram Life and General Insurance, we have not factored it in our estimates. It does, however, provide streams of one-off gains, which can help offset the credit costs required to dispose of the stressed legacy AUM.

We do not see catalysts for any meaningful improvement in the core earnings trajectory of the company. We expect Piramal Enterprises to deliver ~1.7% return on asset and ~6% return on equity in FY26.

We value the lending business at 0.6 times FY26E price/book value (unchanged). Retain Neutral with a revised target price of Rs 1,000 (premised on Mar’26 SOTP).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.