Piramal Pharma Q2 Results Review - Healthy Recovery In Operational Performance: Motilal Oswal

Motilal Oswal Report

Piramal Pharma Ltd. delivered a better-than-expected operational performance in Q2 FY24, led by better traction in the contract development manufacturing organisation and India consumer product segments.

However, higher interest costs resulted in a modest profit after tax of Rs 50 million, compared to Ebitda of Rs 2.6 billion.

We maintain our estimates for FY24/FY25. We value Piramal Pharma on SOTP basis (11 times enterprise value/Ebitda for CDMO/complex hospital generics; 12 times EV/Ebitda for India consumer product, 18 times price-to-earning multiple for Allergen joint venture earnings) to arrive at a target price of Rs 115.

Piramal Pharma has delivered a healthy improvement in Ebitda margin, supported by a superior segment mix and better operating leverage.

While the company reduced its debt by Rs 10.5 billion to Rs 38 billion through a rights issue, we continue to monitor its efforts to further reduce its financial leverage. Maintain 'Buy'.

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.