JM Financial Initiates 'Buy' On Piramal Pharma Citing Robust Pipeline, Global Manufacturing Presence

JM Financial Institutional Securities Ltd. has initiated coverage on Piramal Pharma Ltd. with a 'buy' rating, with a target price of Rs 340, implying a 36% potential upside. The stock is currently trading at a 38% discount to its listed peers, making it an attractive opportunity for investors, holds the brokerage.

JM Financial expects Piramal Pharma's topline to grow at 15% CAGR from fiscal 2024 to fiscal 2027, while Ebitda is projected to increase at 23% CAGR.

At the current market price, Piramal trades at 21 times the fiscal 2026 EV/Ebitda ratio and 17 times that of fiscal 2027, well below the industry average. With India's Contract Research and Development and Manufacturing Organisation industry expected to double in the next three fiscals, Piramal is primed to benefit from the sector's growth, said the firm.