Shares of Piramal Pharma rose over 8 percent on September 25 after the company outlined its ambitious roadmap at a recent analyst meeting, targeting $2 billion in revenue by CY30. Following this, Jefferies increased Piramal Pharma's target price to Rs 260, projecting a 20 percent upside from its previous closing price of Rs 216.
Antique Stock Broking said in a note that Piramal Pharma is banking on its Contract Development and Manufacturing Organization (CDMO) segment, particularly its Antibody-Drug Conjugate (ADC) platform, as a key growth driver.
At 9.55 AM, shares of Piramal Pharma traded 7 percent higher at Rs 232. The stock has delivered consistent positive monthly returns since April. In September alone, it surged 23 percent, significantly outperforming the Nifty 50, which saw a nearly 3 percent gain during the same period.
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Additionally, Piramal expects its Complex Hospitals portfolio and India Consumer Health division to grow at a compound annual growth rate (CAGR) of 12 percent and 9 percent, respectively.
Cost optimisation and productivity enhancements are set to boost EBITDA margins from 15 percent to 25 percent, with a strong focus on expanding the PSS (CDMO) segment. Antique said the company also aims to bring its net debt/EBITDA ratio down to below 1x, significantly improving from the current 3x in FY24.
Piramal Pharma is a global company that offers a range of products and services, including contract development and manufacturing, hospital generics, and over-the-counter products.
In Q1 FY25, Piramal Pharma narrowed its consolidated net loss to Rs 88.6 crore, down from Rs 98.6 crore in the same period last year. Revenue from operations saw a year-on-year growth of nearly 12 percent, reaching Rs 1,951 crore.
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