Recent Price Movement and Market Context
On 5 Dec 2025, Piramal Pharma's stock price reached Rs.177.6, the lowest level seen in the past year. This represents a notable drop from its 52-week high of Rs.279.2, indicating a decline of approximately 36.3% from that peak. Over the last three trading days, the stock has registered a cumulative return of -3.59%, underperforming its sector by 0.81% on the day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests persistent downward momentum in the near term.
In contrast, the broader market has shown resilience. The Sensex opened lower by 139.84 points but recovered to close at 85,376.13, up 0.13% for the day and just 0.92% shy of its 52-week high of 86,159.02. The index is trading above its 50-day and 200-day moving averages, supported by gains in mega-cap stocks.
Financial Performance and Profitability Indicators
Piramal Pharma's financial results for the quarter ended September 2025 reveal challenges in profitability. The Profit Before Tax excluding other income (PBT LESS OI) stood at a loss of Rs.111.78 crores, reflecting a decline of 340.0% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) was negative at Rs.99.22 crores, down 613.2% relative to the prior four-quarter average.
Net sales for the quarter were Rs.2,043.72 crores, showing a reduction of 10.5% against the previous four-quarter average. These figures highlight a contraction in revenue alongside widening losses in the recent quarter.
Over the past year, the stock has generated a return of -34.99%, considerably lagging the Sensex's 4.46% gain during the same period. The company’s long-term sales growth rate over five years stands at 9.15% annually, which is modest within the Pharmaceuticals & Biotechnology sector.
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Debt and Valuation Metrics
The company’s ability to manage its debt obligations remains a concern, with a Debt to EBITDA ratio of 3.83 times. This level indicates a relatively high leverage compared to typical industry standards, which may affect financial flexibility.
Return on Equity (ROE) averaged at 0.32%, signalling limited profitability generated from shareholders’ funds. Meanwhile, the Return on Capital Employed (ROCE) is reported at 2.7%, suggesting modest efficiency in capital utilisation.
From a valuation standpoint, Piramal Pharma’s Enterprise Value to Capital Employed ratio stands at 2.3, which is considered fair relative to its sector peers. The stock is currently trading at a discount compared to the average historical valuations of comparable companies in the Pharmaceuticals & Biotechnology industry.
Long-Term Growth and Institutional Holding
Despite recent setbacks, the company’s operating profit has grown at an annual rate of 23.29% over the long term, indicating some underlying growth in core operations. However, profits over the past year have declined by 158.7%, reflecting the recent financial pressures.
Institutional investors hold a significant stake in Piramal Pharma, accounting for 45.17% of the shareholding. This level of institutional ownership suggests that the stock is closely monitored by entities with substantial analytical resources.
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Comparative Performance and Sector Positioning
Over the last three years, Piramal Pharma has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods. This underperformance contrasts with the broader market’s positive trajectory, particularly the Sensex’s proximity to its 52-week high.
The Pharmaceuticals & Biotechnology sector itself has experienced mixed results, with some companies maintaining steady growth while others face headwinds. Piramal Pharma’s current valuation discount relative to peers may reflect the market’s assessment of its recent financial results and leverage position.
Overall, the stock’s decline to a 52-week low of Rs.177.6 underscores the challenges faced by the company in recent quarters, as well as the broader market dynamics influencing investor sentiment within the sector.
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