Neutral Piramal Enterprises; target of Rs 950: Motilal Oswal

Motilal Oswal recommended Neutral rating on Piramal Enterprises with a target price of Rs 950 in its research report dated August 14, 2024.

Broker Research

August 16, 2024 / 13:50 IST

Neutral

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Piramal Enterprises

PIEL reported 1QFY25 net profit of ~INR1.8b (PQ: ~INR1.4b). This includedan exceptional gain of ~INR1b from recoveries in AIF portfolio. Reported PAT in 4QFY24 included provision write-back on AIF investments of INR11.4b and stake sale in Shriram Investment Holding, resulting in gain of INR8.7b.NII rose 6% YoY and 2% QoQ to ~INR7.2b. PPOP at ~INR2.4b declined ~76%YoY. Total AUM grew 10% YoY and declined 2% QoQ. Wholesale 2.0 AUMgrew 11% QoQ to INR70.7b, while Wholesale 1.0 AUM declined ~50% YoY/11% QoQ to INR130b. Retail AUM grew ~45% YoY to INR505b with its sharein the loan book increasing to ~72% (PQ: 70%).

Outlook

We expect PIEL to deliver ~1.7% RoA and ~6% RoE in FY26. We value the lending business at 0.6x FY26E P/BV and maintain our Neutral rating on the stock with a revised TP of INR950 (premised on Mar’26 SOTP).

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