Mid-cap pharma stock rose above 8% after a well-known brokerage gave a Buy recommendation on the company’s stock with an upside of around 20 percent.
Share price variations:
With a market capitalization of Rs. 28,728 crores, the shares of Piramal Pharma Limited opened the trading session at Rs. 229.00 up 5.65 % to the previous day’s close of Rs. 217.67 and went up to make an intraday high of Rs. 235.42 up 8.15% from the previous close.
At 1:57 pm the stock was trading at Rs. 226.50 about 4.10% above previous day’s close. The stock has delivered impressive returns for its investors, rising over 91% in just six months.
Reason for Rise:
The recent movement in Piramal Pharma’s stock price was triggered after Jefferies, one of the well-known Investment Banks across the globe, has set the target price to Rs 260 indicating a potential upside of 20% from the initial target price, however the stock has moved by 8% in today’s trading session. Now the upside potential is 15% from current price.
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The recommendation is based on the company’s goal of achieving USD 2 billion in revenue by the financial year 2030, with the Contract Development and Manufacturing Organization segment identified as a key growth driver.The also aims to attain a 25% EBITDA margins by 2030.
Financial Performance:
For Q1FY25 the company reduced its net loss to Rs. 88.64 crores compared to Rs. 98.58 crores in Q1FY24, while revenue from operations marked an increase by 11.56 % to Rs. 1,951.14 crores from Rs. 1,748.85 crores in comparison to the same period.
Recent Developments:
Recently, Piramal Pharma acquired a 15.76% stake in Clean Max Aero Private Limited, a company that supplies renewable energy. This investment allows Piramal Pharma to become a ‘Captive User,’ enabling the procurement of renewable energy for its operations.
About the company
Piramal Pharma Limited is a part of the Piramal Group, a global business conglomerate. The company offers a portfolio of differentiated pharma products and services through its 17 global development and manufacturing facilities and a global distribution network in over 100 countries.
The company operates through 3 major segments,a Contract development and manufacturing organisations, a Complex hospital generics business and the India Consumer Healthcare business, selling over-the- counter products.
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Written By: Joseph Pv
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