Piramal Finance.

Is Piramal Finance. overvalued or undervalued?

As of November 20, 2025, Piramal Finance is considered very expensive and overvalued, with a negative PE ratio of -2.83, an EV to EBITDA of -8.67, and a troubling ROE of -48.95%, contrasting sharply with its peers like HUDCO and LIC Housing Finance, despite a remarkable stock return of 7768.08% over the past five years.

As of 20 November 2025, the valuation grade for Piramal Finance has moved from risky to very expensive. The company is currently overvalued, as indicated by its negative PE ratio of -2.83 and an EV to EBITDA ratio of -8.67, which are significantly lower than industry standards. Additionally, the return on equity (ROE) stands at a concerning -48.95%, further highlighting the company's financial struggles.<BR><BR>In comparison to its peers, Piramal Finance's valuation metrics starkly contrast with companies like HUDCO, which has a PE ratio of 16.94 and an EV to EBITDA of 15.20, and LIC Housing Finance, with a PE of 5.53 and an EV to EBITDA of 11.18. These comparisons underscore the overvaluation of Piramal Finance, especially given its current market price of 1675.90, which is near its 52-week high of 1714.00. Notably, despite the company's impressive stock return of 7768.08% over the past five years, this performance does not align with its current financial health and valuation metrics.

How has been the historical performance of Piramal Finance.?

Piramal Finance has demonstrated a strong recovery in its financial performance, with net sales increasing from 6,120.81 Cr in March 2022 to 10,269.56 Cr in March 2025, and operating profit rising significantly to 5,661.55 Cr. The company also reported a profit before tax of 508.28 Cr and a positive earnings per share of 21.54 in March 2025.

Answer:<BR>The historical performance of Piramal Finance shows a fluctuating trend in key financial metrics over the years, with significant improvements noted in the most recent fiscal year.<BR><BR>Breakdown:<BR>Piramal Finance's net sales have increased from 6,120.81 Cr in March 2022 to 10,269.56 Cr in March 2025, marking a substantial recovery from previous years. The total operating income followed a similar trajectory, rising from 6,120.81 Cr in March 2022 to 10,269.56 Cr in March 2025. Operating profit, excluding other income, saw a remarkable increase from 946.71 Cr in March 2023 to 5,661.55 Cr in March 2025, indicating improved operational efficiency. The profit before tax turned positive at 508.28 Cr in March 2025, recovering from significant losses in prior years, while profit after tax also improved to 348.84 Cr. The earnings per share (EPS) reflected this positive trend, rising to 21.54 in March 2025 from a negative EPS in the previous year. The operating profit margin increased to 62.19% in March 2025, showcasing enhanced profitability. On the balance sheet, total liabilities decreased from 1,06,168.02 Cr in March 2019 to 80,786.37 Cr in March 2020, while total assets also saw a decline, indicating a tightening of financial conditions. Cash flow from operating activities turned positive at 12,576.00 Cr in March 2020, a significant improvement from negative cash flows in earlier years. Overall, Piramal Finance has shown a strong recovery in its financial performance, particularly in the latest fiscal year.

Is Piramal Finance. technically bullish or bearish?

As of December 3, 2025, the trend is bullish due to positive MACD and KST readings, although bearish RSI signals indicate some momentum weakness.

As of 3 December 2025, the technical trend has changed from mildly bullish to bullish. The current stance is bullish, driven primarily by the weekly and monthly MACD readings, which are both bullish, along with a bullish KST on both time frames. The daily moving averages also support a bullish outlook. However, the RSI indicates bearish conditions on both weekly and monthly charts, suggesting some weakness in momentum. The Bollinger Bands are mildly bullish, indicating potential upward movement but with caution. Overall, while the trend is bullish, the strength is tempered by the bearish RSI readings.

Are Piramal Finance Ltd latest results good or bad?

Piramal Finance Ltd's latest Q4 FY26 results show strong profit growth with a net profit of ₹501.77 crores, up 389.82% year-on-year, and a 19.99% increase in net sales. However, concerns about a low return on equity (2.91%) and contracting operating margins suggest potential long-term challenges despite the positive growth metrics.

Piramal Finance Ltd's latest results for Q4 FY26 indicate a strong performance overall, particularly in terms of profit growth and revenue. The consolidated net profit surged to ₹501.77 crores, reflecting an impressive year-on-year increase of 389.82%. This dramatic growth signifies a robust recovery for the company, especially considering its past challenges.<BR><BR>Net sales also showed significant growth, reaching ₹3,424.01 crores, which represents a 19.99% increase compared to the same quarter last year. The profit after tax margin improved notably to 16.50%, up from just 4.19% in Q4 FY25, indicating better operational efficiency.<BR><BR>However, there are concerns regarding the company's return on equity (ROE), which stands at a low 2.91%, significantly below industry standards. This raises questions about capital efficiency despite the strong profit growth. Additionally, while the company has shown impressive revenue momentum, the operating margin has contracted from previous levels, suggesting rising operational costs.<BR><BR>In summary, while Piramal Finance's latest results reflect strong profit and sales growth, the low ROE and margin compression indicate that there are underlying challenges that could impact long-term sustainability. Overall, the results can be seen as good in terms of growth metrics, but caution is warranted due to the profitability concerns.

Should I buy, sell or hold Piramal Finance Ltd?

Why is Piramal Finance Ltd falling/rising?

As of 08-May, Piramal Finance Ltd's stock price is rising to Rs 2,017.85, up 5.37%, driven by strong performance against the Sensex, increased investor participation, and solid institutional backing. The stock is near its 52-week high and has shown significant year-to-date gains, reflecting strong market confidence.

As of 08-May, Piramal Finance Ltd's stock price is rising, currently at Rs 2,017.85, reflecting an increase of Rs 102.85 or 5.37%. This upward movement can be attributed to several key factors. <BR><BR>Firstly, the stock has shown strong performance relative to the benchmark Sensex, with a weekly increase of 1.06% compared to the Sensex's 0.54% and a significant monthly rise of 16.10% against a slight decline of 0.30% in the benchmark. Year-to-date, the stock has outperformed the Sensex with a gain of 23.02% while the index has fallen by 9.26%. <BR><BR>Additionally, the stock is trading close to its 52-week high, just 2.75% away from Rs 2,073.25, indicating strong investor interest. On the day of the report, the stock reached an intraday high of Rs 2,032, marking a 6.11% increase. The stock's performance today has also outpaced its sector by 3.52%, further highlighting its strength in the market.<BR><BR>Moreover, there has been a notable increase in investor participation, with delivery volume rising by 99.79% compared to the 5-day average, suggesting heightened interest and confidence among investors. The stock is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which is typically a bullish signal.<BR><BR>Institutional investors hold a significant stake of 33.44% in Piramal Finance Ltd, and their holdings have increased by 1.6% over the previous quarter, indicating strong confidence in the company's fundamentals. The company also boasts a robust long-term growth outlook, with a 17.65% compound annual growth rate (CAGR) in operating profits.<BR><BR>In summary, the combination of strong performance metrics, increased investor participation, and solid institutional backing contributes to the rising stock price of Piramal Finance Ltd.

Which are the latest news on Piramal Finance.?