Why is Piramal Pharma Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.16 times
- Poor long term growth as Net Sales has grown by an annual rate of 7.79% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.16 times
- The company has been able to generate a Return on Equity (avg) of 0.58% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- ROCE(HY) Lowest at 2.61%
- DEBT-EQUITY RATIO(HY) Highest at 0.70 times
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -1.01% in the last 1 year, its fall in the stock was much higher with a return of -16.65%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Piramal Pharma for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Piramal Pharma
-16.82%
-0.52
31.73%
Sensex
-7.49%
-0.58
13.01%
Quality key factors
Factor
Value
Sales Growth (5y)
7.79%
EBIT Growth (5y)
56.94%
EBIT to Interest (avg)
0.66
Debt to EBITDA (avg)
5.22
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
0.64
Tax Ratio
85.13%
Dividend Payout Ratio
81.66%
Pledged Shares
0
Institutional Holding
45.79%
ROCE (avg)
2.41%
ROE (avg)
0.58%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
35
Price to Book Value
2.82
EV to EBIT
302.19
EV to EBITDA
29.64
EV to Capital Employed
2.19
EV to Sales
3.08
PEG Ratio
NA
Dividend Yield
0.06%
ROCE (Latest)
0.72%
ROE (Latest)
-1.59%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
6What is working for the Company
PBT LESS OI(Q)
At Rs 172.71 cr has Grown at 611.1% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.55 times
NET SALES(Q)
At Rs 2,751.77 cr has Grown at 24.1% (vs previous 4Q average
-5What is not working for the Company
ROCE(HY)
Lowest at 2.61%
DEBT-EQUITY RATIO(HY)
Highest at 0.70 times
Loading Valuation Snapshot...
Here's what is working for Piramal Pharma
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 172.71 cr has Grown at 611.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -33.79 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.55 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
At Rs 2,751.77 cr has Grown at 24.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 2,217.84 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Piramal Pharma
Debt-Equity Ratio - Half Yearly
Highest at 0.70 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






