Piramal Pharma Shares Gain 13% After First Profit In Three Quarters

The company swung back into profit sequentially, aided by its contract manufacturing and hospital generics segments.

<div class="paragraphs"><p>Source: Unsplash</p></div>
Source: Unsplash

Shares of Piramal Pharma Ltd. jumped over 13% on Thursday after it reported its first profit in three quarters.

This was due to the sequential growth in the company's contract development and manufacturing organisation and complex hospital generics segments in the quarter ended March. Sequentially, they rose 26% and 37%, respectively, as per company disclosures.

However, on a year-on-year basis, the company's net profit fell 75% to Rs 50 crore during the quarter ended March.

Piramal Pharma Q4 Highlights (Year-on-Year, Consolidated)

  • Revenue up 2% at Rs 2,164 crore.

  • Operating profit was down 12% to Rs 351 crore.

  • Margins at 16.2% versus 18.7%.

  • Net profit down 75% to Rs 50 crore.

Other Highlights (YoY, Consolidated)

  • The CDMO business fell 8%.

  • The CHG business rose 28%.

  • The India Consumer Healthcare business was up 5%.

"Over the recent years, Q4 has always been the strongest quarter for the company in terms of revenue contribution and Ebitda margin. This year as well, we have seen a healthy pickup in our Q4 revenues and ebidta margin, compared to the previous three quarters of the financial year," said Nandini Piramal, chairperson at Piramal Pharma.

Piramal Pharma received zero observations post-inspections at its Riverview and Digwal facilities and an establishment inspection report (which indicates closure of inspection) for its Lexington and Sellersville facilities.

Shares of Piramal Pharma jumped 13.32% intraday before paring gains and trading at a 12.04% high as of 9:55 a.m. This compares with a 0.08% advance in the benchmark NSE Nifty 50.

The shares jumped to their highest intraday level since the company's listing on Oct. 19, 2022. Total traded volume stood at 16.7 times its 30-day average. The relative strength index was 68.

All six analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 30.4%.