Buy Piramal Enterprises; target of Rs 1750 : Motilal Oswal

Motilal Oswal's research report on Piramal Enterprises

Piramal Enterprises (PIEL) has built a differentiated and robust business model in the Pharma space, with an established presence in Contract Development and Manufacturing Outsourcing (CDMO, 60% of Pharma sales), Complex Hospital Generics (CHG, 30% of Pharma sales), and India Consumer Products (ICP, 10% of Pharma sales). After some aberration in the recent past, it is back on the growth path in the Pharma space. Its order book has strengthened in the CDMO segment. The company re-strategized its business, subsequently introduced new products, and increased its distribution reach, thereby driving enhanced revenue growth in the ICP segment. We expect CHG segment to revive gradually as elective surgeries are yet to return to normalcy. We remain positive on PIEL on superior execution across Pharma segments and an increasing retail-focused lending book. Reiterate Buy.

Outlook

We use SoTP to arrive at our TP of INR1,750 per share (FY22E-based). Maintain Buy.