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 Analysis

Average dividend payer and fair value.


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

Stable Share Price: 500302's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.4%

500302

5.4%

IN Pharmaceuticals

8.9%

IN Market


1 Year Return

-68.5%

500302

-22.1%

IN Pharmaceuticals

-30.6%

IN Market

Return vs Industry: 500302 underperformed the Indian Pharmaceuticals industry which returned -21.9% over the past year.

Return vs Market: 500302 underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

500302IndustryMarket
7 Day32.4%5.4%8.9%
30 Day-35.0%-13.5%-24.8%
90 Day-44.2%-14.5%-29.4%
1 Year-67.2%-68.5%-20.8%-22.1%-29.2%-30.6%
3 Year-53.4%-56.1%-29.6%-31.5%-17.0%-21.5%
5 Year6.4%-3.8%-40.8%-42.8%-5.4%-10.4%

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?

7.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500302 (₹849.7) is trading above our estimate of fair value (₹531)

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


Price To Earnings Ratio

PE vs Industry: 500302 is good value based on its PE Ratio (7.7x) compared to the Pharmaceuticals industry average (11x).

PE vs Market: 500302 is good value based on its PE Ratio (7.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500302 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 500302 is good value based on its PB Ratio (0.6x) compared to the IN Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is Piramal Enterprises forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500302's forecast earnings growth (6.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 500302's earnings (6.5% per year) are forecast to grow slower than the Indian market (19.6% per year).

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

Revenue vs Market: 500302's revenue (5.7% per year) is forecast to grow slower than the Indian market (8.9% per year).

High Growth Revenue: 500302's revenue (5.7% 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 (8.7%).


Next Steps

Past Performance

How has Piramal Enterprises performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500302 has high quality earnings.

Growing Profit Margin: 500302's current net profit margins (14.6%) are lower than last year (38.9%).


Past Earnings Growth Analysis

Earnings Trend: 500302's earnings have grown significantly by 20.2% 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 (-55.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (22%).


Return on Equity

High ROE: 500302's Return on Equity (8.2%) is considered low.


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 (198.1%) is considered high.

Reducing Debt: 500302's debt to equity ratio has increased from 43.1% to 198.1% over the past 5 years.

Debt Coverage: 500302's debt is not well covered by operating cash flow (4.7%).

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 0.3x debt).


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500302's dividend (3.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 500302's dividend (3.3%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

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 (25.5%), 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 (28.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.6yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Ajay Piramal
Chairman12.92yrs₹127.93m0.058% 110.3m
Swati Piramal
Vice Chairpersonno data₹57.64m0.00093% 1.8m
Vijay Shah
Executive Director8.17yrs₹69.72m0.057% 108.7m
Nandini Piramal
Executive Director10.92yrs₹41.92m0.023% 44.3m
Deepak Satwalekar
Non-Executive Independent Directorno data₹3.95m0.0052% 10.0m
Narayanan Vaghul
Non-Executive Independent Directorno data₹4.10m0.0052% 10.0m
Keki Dadiseth
Non-Executive Independent Director14.25yrs₹3.80m0.0028% 5.3m
Subramaniam Ramadorai
Non-Executive Independent Directorno data₹3.40m0.0027% 5.1m
Goverdhan Mehta
Non-Executive Independent Director8.25yrs₹3.60m0.0025% 4.8m
Raghunath Mashelkar
Non-Executive Independent Director8.25yrs₹4.00m0.0042% 8.0m

9.6yrs

Average Tenure

72.5yo

Average Age

Experienced Board: 500302's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500302 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹191.640b
  • Shares outstanding: 225.54m
  • 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, Financial Services, and Healthcare Insights & Analytics segments. The company offers contract development and manufacturing solutions across the drug life cycle, including drug lifecycle, drug discovery, development, and commercial manufacturing of drug substances and products. It also provides inhalation anaesthetics, including Sevoflurane, Isoflurane, and Halothane; Intrathecal Baclofen therapy for spasticity management; injectable anaesthesia/pain management products, such as Sublimaze, Sufenta, Rapifen, Dipidolor, and Hypnomidate; intrathecal severe spasticity/pain management products comprising Gablofen and MITGO; Levothyroxine sodium injectable for Myxodema Coma; Miglustat capsule for type I Gaucher & Niemann-Pick disease; and API generics, vitamins, and premixes. In addition, the company offers OTC products for skin care, pain management, oral care, respiratory, gastro-intestinal, women’s health, and baby care and kids wellbeing under the Saridon, Lacto Calamine, i-pill, Tetmosol, Polycrol, Naturolax, Caladrylh, and Little’s brands. Further, it provides PhytoMedicines products to manage lifestyle ailments, such as cough-cold, women-care range, lifestyle disorder products like stress relievers, sleep disorders, piles, skin care-topicals, immunity enhancer, liver disorder, and others; and research and data, custom analytics, and consulting and managed services, as well as financing services. Piramal Enterprises Limited has strategic alliances with APG Asset Management, Bain Capital Credit, CPPIB Credit Investment Inc., and Ivanhoé Cambridge. The company was formerly known as Piramal Healthcare Limited and changed its name to Piramal Enterprises Limited in July 2012. Piramal Enterprises Limited was incorporated in 1947 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:56
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.