Emkay Global has buy call on Piramal Enterprises with a target price of Rs 1360. The current market price of is Rs 964.85. Time period given by analyst is one year when . price can reach defined target.

Piramal Enterprises Ltd., incorporated in the year 1947, is a Large Cap company (having a market cap of Rs 22991.67 Crore) operating in Diversified sector.

Piramal Enterprises Ltd. key Products/Revenue Segments include Pharmaceuticals, Interest, Income From Financial Services, Sale of services, Dividend, Other Operating Revenue for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3726.46 Crore, down -15.33 % from last quarter Total Income of Rs 4401.03 Crore and up 23.74 % from last year same quarter Total Income of Rs 3011.60 Crore . Company reported net profit after tax of Rs 316.78 Crore in latest quarter.

Investment Rationale
The brokerage initiates coverage with a BUY rating and Sep-23 TP of Rs1,360, based on SOTP methodology, valuing: i) the financial services business using the Excess Return on Equity (ERE) method for a per-share value of Rs845, implying 1.03x of Sep24E BVPS; ii) Investments in

based on TP for and , post holdco discount, at Rs179 per share; iii) Investments in the AIF and Insurance at allocated equity book value of Rs58 and Rs40 per share, respectively; and iv) the unallocated net worth at Rs237 per share. Key risk: Integration issues from the merger due to mismatch of corporate culture and technology.



Promoter/FII Holdings
Promoters held 43.49 per cent stake in the company as of 30-Jun-2022, while FIIs owned 34.54 per cent, DIIs 8.13 per cent.

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