Here is the review of Piramal Enterprises by lea leading brokerage house and the gist of it is summarized below,
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. PIEL has the distinction of being one of the few companies in India to generate 25%+ book value CAGR over past 25+ years. Best talent, coupled with stringent underwriting, has enabled PIEL to build a fast-growing, highly profitable franchise with robust asset quality. The planned capital infusion (up to INR50b) will provide the much-needed ammunition to continue on the robust growth path.
SOTP to arrive at FY19 based target price of INR3,044 and FY20 based target price of INR3813
NOTE - Please Consult your SEBI registered Adviser before making any investment decisions.
