Piramal Enterprises Reports Mixed Performance in Q2, Investors Advised to Hold

Piramal Enterprises, a leading finance and NBFC company in the largecap industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Piramal Enterprises has shown a flat performance in the quarter, with a slight improvement in its score from -6 to -3 in the last three months. However, there are some positive aspects to the company's performance.

The Profit Before Tax (PBT) for the quarter has seen a significant growth of 105.6% at Rs 26.24 crore, compared to the average PBT of the previous four quarters at Rs -472.34 crore. This indicates a very positive trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) for the quarter has shown a remarkable growth of 3370.3% at Rs 97.05 crore, compared to the average PAT of the previous four quarters at Rs -2.97 crore. This also indicates a very positive trend in the near term for PAT.

However, there are some areas that need improvement for Piramal Enterprises. The company's Operating Cash Flow for the year has been consistently falling, with the lowest at Rs 26.43 crore. This indicates a decline in cash revenues from business operations.

Moreover, the Dividend Payout Ratio (DPR) for the year has also been consistently falling, with the lowest at -13.34%. This shows that the company is distributing a lower proportion of its profits as dividends.

Another concern is the high Non Operating Income, which accounts for 76.83% of the Profit Before Tax (PBT). This indicates that the company's income from non-business activities is high, which may not be a sustainable business model. Additionally, the Non Operating Income for the quarter has been the highest in the last five quarters at Rs 87.03 crore, which may not be sustainable in the long run.

Overall, Piramal Enterprises has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects, there are also areas that need improvement. Investors are advised to hold their stocks and closely monitor the company's performance in the upcoming quarters.