Recent Price Movement and Market Context
On 8 December 2025, Piramal Pharma's share price touched an intraday low of Rs.176.35, representing a 2.0% decline on the day and a cumulative fall of 4.67% over the last four trading sessions. This movement contrasts with the broader sector, where the stock underperformed by 1.42% relative to its peers. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
Meanwhile, the Sensex index opened flat but later declined by 231.68 points, or 0.37%, closing at 85,393.16. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, trading approximately 0.9% below that peak. The index continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market environment contrasting with Piramal Pharma’s performance.
Long-Term and Short-Term Performance Analysis
Over the past year, Piramal Pharma’s stock has recorded a return of -33.93%, significantly lagging behind the Sensex’s 4.52% gain during the same period. The stock’s 52-week high was Rs.273.20, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.
Such sustained negative returns reflect a combination of factors affecting the company’s financial health and market perception.
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Financial Metrics and Profitability Concerns
Piramal Pharma’s financial data reveals several areas of concern. The company’s ability to service its debt is limited, with a Debt to EBITDA ratio of 3.83 times, indicating a relatively high leverage position. This level of indebtedness may constrain financial flexibility and increase risk exposure.
Net sales for the quarter ending September 2025 stood at Rs.2,043.72 crores, showing a decline of 10.5% compared to the previous four-quarter average. Profit before tax (PBT) for the same period was reported at a loss of Rs.111.78 crores, representing a fall of 340.0% relative to the prior four-quarter average. Similarly, the net profit after tax (PAT) recorded a loss of Rs.99.22 crores, a decline of 613.2% compared to the previous four-quarter average.
These figures highlight a challenging near-term earnings environment for the company, with profitability metrics under pressure.
Return on Equity and Growth Trends
The company’s average Return on Equity (ROE) is 0.32%, indicating limited profitability generated per unit of shareholders’ funds. This low ROE suggests that the company has struggled to convert equity investments into meaningful earnings.
On the growth front, net sales have expanded at an annual rate of 9.15% over the last five years, reflecting moderate long-term growth. Operating profit has grown at a higher annual rate of 23.29%, signalling some improvement in operational efficiency or cost management over the longer term.
Valuation and Capital Efficiency
Piramal Pharma’s Return on Capital Employed (ROCE) stands at 2.7%, which, while modest, indicates some level of capital efficiency. The company’s Enterprise Value to Capital Employed ratio is 2.3, suggesting a valuation that is fair relative to the capital invested in the business. Compared to its peers, the stock is trading at a discount to historical average valuations, which may reflect the market’s cautious stance given recent performance.
Institutional Holdings and Market Position
Institutional investors hold 45.17% of Piramal Pharma’s shares, representing a significant stake by entities with substantial analytical resources. This level of institutional ownership may influence the stock’s trading dynamics and reflects a degree of confidence in the company’s fundamentals despite recent price movements.
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Summary of Key Challenges and Market Positioning
The recent decline to a 52-week low of Rs.176.35 underscores the pressures facing Piramal Pharma in both the short and long term. The stock’s performance contrasts with the broader market’s relative strength, as the Sensex remains near its yearly peak. The company’s financial indicators reveal constraints related to debt servicing, profitability, and sales growth, which have contributed to the subdued market valuation.
Despite these challenges, the company maintains some positive attributes, including steady operating profit growth and a valuation discount relative to peers. Institutional ownership remains substantial, reflecting ongoing interest from sophisticated investors.
As Piramal Pharma navigates this period of market pressure, its stock price and financial metrics will continue to be closely monitored by market participants.
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