MOSL: PIRAMAL ENTERPRISES (Buy)-Capitalizing on multiple opportunities-NBFC and Pharma are key value drivers
​PIRAMAL ENTERPRISES: Capitalizing on multiple opportunities; NBFC and Pharma are key value drivers
(PIEL IN, Mkt Cap USD7.5b, CMP INR2798, TP INR3044, 9% Upside, Buy)
- Piramal Enterprises (PIEL) has carved a niche for itself in wholesale lending, and is now one of the dominant players in most of the segments in which it operates. In the lending business, the company has one of the lowest GNPAs and the highest profitability. Post the initial years of lower-tenure loan book, PIEL is moving toward secured and higher-tenure products, which provides support to growth. We expect a 40% loan CAGR in the NBFC business.
- The Pharma business has demonstrated strong growth and improvement in profitability in recent years. With its focus on building a portfolio via inorganic acquisitions and the impending closure of the imaging business, we expect a sharp improvement in profitability.
Piramal Enterprises is a pharmaceutical group based in India. Co. is engaged in the production, packaging, marketing, sale, import, and export of pharmaceutical products in the form of tablets, capsules, liquids, powders, creams, ointments, granules and bulk drug. Co. is engaged in the manufacture of glass containers. Co.'s brands include Phensedyl, Haemaccel, Stemetil, Paraxin, Phenergan, Gardenal, Pentids, Tixylix, Supradyn and Tenormin. Co. maintains over 295 issued patents plus 808 pending patent applications, spread across categories such as compositions of matter, methods of treatments, biomarkers, diagnostics, pharmaceutical compositions and drug delivery systems.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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