Piramal Enterprises Q4 Results Review: Motilal Oswal Retains 'Neutral', Revises Target Price — Here's Why

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Motilal Oswal Report

Piramal Enterprise Ltd. delivered a steady quarter, driven by robust growth in the retail loan portfolio, even as the legacy AUM continued to decline. However, this was largely offset by healthy recoveries from the AIF book. Asset quality remained largely stable across segments, while the retail opex ratio continued to show improvement.

Our earnings estimates for FY26 and FY27 factor in gains from the AIF exposures, deferred consideration of $120 million from the sale of Piramal Imaging, and zero tax outgo in the foreseeable future. Because of the uncertainty and unpredictability around the timing of the monetization of the stake in Shriram Life and General Insurance, we have not factored it into our estimates yet. It will, however, provide one-off gains, which can help offset the credit costs required to dispose of the stressed legacy AUM.

We expect Piramal Enterprises to deliver ~1.2% RoA and ~5% RoE in FY27E. We value the lending business at 0.7x Mar’27E P/BV and reiterate our Neutral rating on the stock with a revised target price of Rs 1,085 (premised on Mar’27E SOTP).

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