Piramal Pharma - Focused Approach Across Segments To Boost Earnings: Motilal Oswal

Motilal Oswal Report

We expect Piramal Pharma Ltd. to deliver a compound annual growth rate of 13%/28% in revenue/Ebitda and expect profit after tax to grow 3.5 times over FY24-26, aided by:

1. a healthy order inflow in contract development manufacturing organisation,

2. expansion of IA portfolio in rest of world market, and

3. new launches and increasing reach of power brand.

A decline in interest expenses could also improve profitability.

We maintain our Buy rating on Piramal Pharma with a target price of Rs 190, based on SOTP (17 times enterprise value/Ebitda for CDMO business; 13 times EV/Ebitda for complex hospital generic and India consumer health business).

We expect the performance to scale up further for all three segments and have better operating leverage over the next two-three years. Reiterate Buy on the stock.

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.