Motilal Oswal is bullish on Piramal Enterprises has recommended buy rating on the stock with a target price of Rs 2400 in its research report dated July 30, 2019.
Motilal Oswal 's research report on Piramal Enterprises
Piramal Enterprises (PIEL) reported 1QFY20 PAT of INR4.5b (core PBT up 20% YoY). The quarter was characterized by a moderation in loan growth (flat QoQ and 20% YoY v/s 30%+ earlier), an improvement in asset quality (GNPA flat QoQ; stage 2 loans down to 0.5% from 1.5% in 4Q) and an expansion in the Pharma EBITDA margin to 22% (+200bp YoY).
Moderating the growth estimates and higher costs, we cut our core PBT estimate by 15-18% for FY20/21. Key risk to our estimates could stem from changes in regulatory norms for NBFCs and outlook for real estate. Our revised SOTP based TP is INR2,400.
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