Piramal Enterprises Ltd., incorporated in the year 1947, is a Large Cap company (having a market cap of Rs 36778.54 Crore) operating in Diversified sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3264.82 Crore, down -2.23 % from last quarter Total Income of Rs 3339.39 Crore and down -17.28 % from last year same quarter Total Income of Rs 3947.00 Crore.
Investment Rationale
Over the past two years, PIEL has done a good job of strengthening its Balance Sheet by trimming its Wholesale loan book, reducing exposures to the top 10 clients, and increasing provisions. At 6.3% of loans, total outstanding provisions exceed GNPLs. Over the next five years, the brokerage expects the company to make meaningful inroads in the Retail lending segment. Its strategy of product diversification will help it deliver strong growth, while at the same time reduce concentration risk. It expects the Financial Services business to deliver 4% RoA/12% RoE over the medium term. It has raised EV/EBITDA multiple for the Pharma business to 17x (from 16x earlier) considering the increasing number of projects on an integrated basis in the CDMO segment, better stance in the CHG segment, and new offerings/leveraging ecommerce in the ICP segment.
Promoter/FII Holdings
Promoters held 46.1 per cent stake in the company as of March 31, 2021, while FIIs held 29.8 per cent, DIIs 10.5 per cent and public and others 13.6 per cent.
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