Piramal Pharma Q4 Review: Operationally Inline; FY25 Ends On A Strong Note, Says Motilal Oswal —Maintains Buy

Piramal Pharma delivered in-line sales/Ebitda in Q4 FY25. However, its earnings were below our estimate due to impairment of certain intangible assets during the quarter..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 earnings estimate of Piramal Pharma Ltd. by 47%/33% for FY26/FY27, factoring in-inventory normalization for one product in the contract development manufacturing organisation segment,inconsistent recovery in funding biotech projects, thus affecting the outlook of the CDMO business, andlower operating leverage. .We value Piramal Pharma on an SoTP basis (17x EV/Ebitda for CDMO business, 12 times EV/Ebitda for CHG business, and 13x EV/Ebitda for consumer health business) to arrive at a target price of Rs 250. While FY26 would be the year of consolidation in revenue for Piramal Pharma, it continues to invest in-potential areas like ADCs/peptides/sterile injectables within the CDMO segment, capacity expansion in the CHG segment, and further improvement in profitability in the ICH segment. Accordingly, we build ~3x earnings over FY25-27. Reiterate Buy..Click on the attachment to read the full report:.Sobha Can Rally 37% Says Motilal Oswal On Strong Growth Prospects.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.

Piramal Pharma Q4 Review: Operationally Inline; FY25 Ends On A Strong Note, Says Motilal Oswal —Maintains Buy

Motilal Oswal maintains 'Buy' rating on Piramal Pharma but cuts target price

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