Motilal Oswal Stays 'Neutral' On Piramal Enterprises Shares, Revises Target Price — Here's Why

While Piramal Enterprises anticipates greater earnings stability and an improved outlook going forward, its return metrics remain modest, adds Motilal Oswal

Motilal Oswal Financial Services

24 Jun 2025, 12:20 PM IST i

<div class="paragraphs"><p>Piramal Enterprises Ltd.’s strategic shift toward building a granular and diversified retail franchise, alongside a calibrated wholesale 2.0 book, continues to gain traction.</p><p>(Photo Source: Company website)</p></div>

Piramal Enterprises Ltd.’s strategic shift toward building a granular and diversified retail franchise, alongside a calibrated wholesale 2.0 book, continues to gain traction.

(Photo Source: Company website)

Piramal Enterprises is intensifying its efforts to expand its net interest margins through multiple strategic levers in order to improve RoA. The company expects NIM expansion to be driven by three levers - linear improvement in fee income, aided by its previously unrecognized trail fee income; increase in the share of unsecured retail assets to ~30% from ~23% currently in the next few years; and a reduction in the cost of borrowings...