BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Further uptick in sales in CDMO/CHG segment remains the key
Piramal Pharma (PIRPHARMA) delivered better-than-expected 4QFY23 performance, on revived traction in the Contract development and manufacturing operations (CDMO)/complex hospital generics (CHG) segment. PIRPHARMA is witnessing healthy increase in purchase orders in the CDMO segment and improved momentum in inhalation anesthesia (IA)/intrathecal portfolio within the CHG segment, which would enhance sales prospects over the medium term.
We raise our earnings estimate by 7%/3% for FY24/FY25 to factor in a) capacity expansion in the CDMO segment, b) increased production of CHG products by CMO partners, and c) increase in interest outgo.
After a sharp deceleration in performance over 9MFY23, PIRPHARMA has shown reasonable progress in profitability in 4QYF23. With increased demand and efficient production management, we expect PIRPHARMA to strengthen its performance over the medium term.
We value PIRPHARMA on an SOTP basis (10x EV/EBITDA of CDMO business, 10x EV/EBITDA for CHG, and 12x India consumer products (ICP)) to arrive at a price target of INR95. We reiterate our BUY rating on the stock.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2023-09/a2e27213-3e0f-42a3-a427-cfcd30686c9e/glenmark_1.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Glenmark Pharma Q1 Review - Operationally Inline; Domestic Formulation, Europe Drive Earnings: Motilal Oswal
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2020-11/4458175a-55ed-4b81-98a9-708f6218af24/TCI_Express_Ltd___image_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
TCI Express Q1 Results Review - Low Volumes Result In Subdued Performance: ICICI Securities
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-11/fb136936-eb81-4cc3-a27c-81624e3dc078/titan_about_us.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Titan Q1 Result Review: Analysts See International Segment, Jewellery Leading Growth
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-08/ed59726d-fc03-44d3-9d60-a6827c77dd8f/Technicians_at_quality_control_department_at_Clean_Science_Technology___Source_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Clean Science Q1 Review - Inline Result Led By Volume Recovery: Nirmal Bang
![timelogo](/images/amp-time.png)