Motilal Oswal Maintains 'Buy' On Piramal Pharma Despite Near-Term Headwinds; Q2 Results Review

Piramal Pharma delivered in-line revenue for Q2 FY62. However, it delivered a miss on Ebitda/PAT for the quarter. Higher operational costs impacted the quarter’s performance.NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We cut our Ebitda estimates for Piramal Pharma Ltd. by 21%/21%/17% for FY26/FY27/FY28, factoring in:a gradual scale-up of the CDMO business,supply challenges in the complex hospital generics segment, and higher operational costs. .We value Piramal Pharma on an SoTP basis (18x EV/Ebitda for contract development manufacturing organisation business, 12x EV/Ebitda for CHG business, and 13x EV/Ebitda for ICH business) to arrive at a target price of Rs 240. Pirama Pharma continues to:enhance customer base/secure new contracts from existing customers in the CDMO segment, andintroduce new products in the CHG segment. With operational costs already being incurred, we expect operating leverage to drive earnings as revenue growth revives. Reiterate Buy..Click on the attachment to read the full report:.Bajaj Housing Finance Q2 Review: Strong Growth Despite Competitive Pressure— Motilal Oswal Maintains 'Neutral'.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal Maintains 'Buy' On Piramal Pharma Despite Near-Term Headwinds; Q2 Results Review

Motilal Oswal maintains a ‘Buy’ rating on Piramal Pharma and revises target price, implying a 20% upside.

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