BSE:500302

Stock Analysis Report

Executive Summary

Piramal Enterprises Limited produces and sells pharmaceutical, medicinal, and chemical and botanical products in India and internationally.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Piramal Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

25.3%

500302

4.0%

IN Pharmaceuticals

2.4%

IN Market


1 Year Return

-11.0%

500302

-13.9%

IN Pharmaceuticals

8.0%

IN Market

Return vs Industry: 500302 exceeded the Indian Pharmaceuticals industry which returned -13.9% over the past year.

Return vs Market: 500302 underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

500302IndustryMarket
7 Day25.3%4.0%2.4%
30 Day-6.7%-2.8%2.5%
90 Day-1.6%0.7%3.6%
1 Year-9.8%-11.0%-13.1%-13.9%10.3%8.0%
3 Year-0.7%-4.3%-24.6%-26.2%22.3%16.0%
5 Year142.0%124.0%-10.2%-12.9%42.8%29.3%

Price Volatility Vs. Market

How volatile is Piramal Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Piramal Enterprises undervalued compared to its fair value and its price relative to the market?

16.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500302 (₹1721.95) is trading above our estimate of fair value (₹557.04)

Significantly Below Fair Value: 500302 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500302 is poor value based on its PE Ratio (16.6x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: 500302 is poor value based on its PE Ratio (16.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 500302 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 500302 is good value based on its PB Ratio (1.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Piramal Enterprises forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500302's forecast earnings growth (16.5% per year) is above the savings rate (7.6%).

Earnings vs Market: 500302's earnings (16.5% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: 500302's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500302's revenue (16.1% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 500302's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500302's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Piramal Enterprises performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500302's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: 500302's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500302 had negative earnings growth (-57.4%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.2%).


Return on Equity

High ROE: 500302's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: 500302 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 500302 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Piramal Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 500302's short term assets (₹143.1B) do not cover its short term liabilities (₹274.3B)

Long Term Liabilities: 500302's short term assets (143.1B) do not cover its long term liabilities (277.6B)


Debt to Equity History and Analysis

Debt Level: 500302's debt to equity ratio (133%) is considered high

Reducing Debt: 500302's debt to equity ratio has increased from 42.9% to 133% over the past 5 years.

Debt Coverage: 500302's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 500302's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: 500302 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500302's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Piramal Enterprises's current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500302's dividend (1.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500302's dividend (1.63%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: 500302's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500302's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), 500302's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500302's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

What is the CEO of Piramal Enterprises's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average board tenure


CEO

Piramal Enterprises has no CEO, or we have no data on them.


Board Age and Tenure

9.2yrs

Average Tenure

72.5yo

Average Age

Experienced Board: 500302's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: 500302 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹8,636,33910 Sep 19
Piyush Gupta
EntityIndividual
Shares4,366
Max Price₹1,978.09
Sell₹1,087,80021 Jun 19
Leonard D’Souza
EntityIndividual
Shares600
Max Price₹1,813.00
Sell₹5,401,91429 Mar 19
Navin Dhanuka
EntityIndividual
Shares2,000
Max Price₹2,750.00

Ownership Breakdown


Management Team

  • Vijay Shah (61yo)

    Executive Director

    • Tenure: 7.8yrs
    • Compensation: ₹69.72m
  • Ajay Piramal (64yo)

    Chairman

    • Tenure: 12.5yrs
    • Compensation: ₹127.93m
  • Swati Piramal (63yo)

    Vice Chairperson

    • Tenure: 0yrs
    • Compensation: ₹57.64m
  • Nandini Piramal (39yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹41.92m
  • Shantanu Nalavadi (48yo)

    Managing Director of Distressed Asset Fund

    • Tenure: 0yrs
  • Khushru Jijina (54yo)

    Managing Director of Piramal Capital & Housing Finance Ltd

    • Tenure: 0yrs
  • Vivek Valsaraj

    President & CFO

    • Tenure: 0yrs
    • Compensation: ₹17.96m
  • Anil Srivastava

    Business Head and Senior VP of APIs & Nutrition

    • Tenure: 3yrs
  • Hitesh Dhaddha

    Chief Investor Relations Officer

    • Tenure: 0yrs
  • Bipin Singh (51yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Vijay Shah (61yo)

    Executive Director

    • Tenure: 7.8yrs
    • Compensation: ₹69.72m
  • Ajay Piramal (64yo)

    Chairman

    • Tenure: 12.5yrs
    • Compensation: ₹127.93m
  • Deepak Satwalekar (71yo)

    Non-Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹3.95m
  • Narayanan Vaghul (83yo)

    Non-Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹4.10m
  • Keki Dadiseth (74yo)

    Non-Executive Independent Director

    • Tenure: 13.8yrs
    • Compensation: ₹3.80m
  • Subramaniam Ramadorai (75yo)

    Non-Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹3.40m
  • Swati Piramal (63yo)

    Vice Chairperson

    • Tenure: 0yrs
    • Compensation: ₹57.64m
  • Goverdhan Mehta (76yo)

    Non-Executive Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹3.60m
  • Nandini Piramal (39yo)

    Executive Director

    • Tenure: 10.5yrs
    • Compensation: ₹41.92m
  • Raghunath Mashelkar (76yo)

    Non-Executive Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹4.00m

Company Information

Piramal Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Piramal Enterprises Limited
  • Ticker: 500302
  • Exchange: BSE
  • Founded: 1947
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹334.162b
  • Shares outstanding: 198.85m
  • Website: https://www.piramal.com

Number of Employees


Location

  • Piramal Enterprises Limited
  • Piramal Ananta, Agastya Corporate Park
  • 109 A, 109A/1 to 109/21A, 111 and 110, 110/1 to 110/13
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500302BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
PELNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Piramal Enterprises Limited produces and sells pharmaceutical, medicinal, and chemical and botanical products in India and internationally. It operates in Pharmaceuticals Manufacturing and Services, Financ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:43
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.