Check Before You Invest : Piramal Pharma Ltd

Q: Which industry/sub-sector does Piramal Pharma Ltd belong to?

Piramal Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Piramal Pharma Ltd a good quality company?

Piramal Pharma Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Piramal Pharma Ltd undervalued or overvalued?

Piramal Pharma Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 34.13, Historic Median: 47.58. Price to Book, Current: 2.93, Historic Median: 2.95. Price to Sales, Current: 5, Historic Median: 4.71. EV to EBITDA, Current: 18.42, Historic Median: 25.74

Q: Is Piramal Pharma Ltd a good buy now?

Piramal Pharma Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Gross Profit margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is above its 5-year median of 19%, indicating increasing margins.

Q: Operating Profit Margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.17% for FY-2025, which is above its 5-year median of 14.26% indicating increasing margins.

Q: Net Profit Margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Net Profit Margin is 13.08% for FY-2025, is above its 5-year median of 11%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.8, Historic Median: 19. Operating Profit Margin (%), Current: 19.17, Historic Median: 14.26. Net Profit Margin (%), Current: 13.08, Historic Median: 11

Q: Return on Asset of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on Asset is 6.64%, which is above its 5-year historical median of 5.47%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on capital employed is 12.4% for FY-2025, which is above its 5-year historical median of 9.86%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q: Return on Equity (ROE) of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on equity is 9.83% for FY-2025, which is above its 5-year historical median of 7.97%, indicating the business is making better use of its shareholders capital.

Check Before You Invest : Piramal Pharma Ltd

Snapshot

Q.1 Which industry/sub-sector does Piramal Pharma Ltd belong to?

Piramal Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Piramal Pharma Ltd a good quality company?

Piramal Pharma Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Piramal Pharma Ltd undervalued or overvalued?

Piramal Pharma Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	34.13	47.58
Price to Book	2.93	2.95
Price to Sales	5	4.71
EV to EBITDA	18.42	25.74

Q.4 Is Piramal Pharma Ltd a good buy now?

Piramal Pharma Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is above its 5-year median of 19%, indicating increasing margins.

Q.2 Operating Profit Margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.17% for FY-2025, which is above its 5-year median of 14.26% indicating increasing margins.

Q.3 Net Profit Margin of Piramal Pharma Ltd?

Piramal Pharma Ltd Net Profit Margin is 13.08% for FY-2025, is above its 5-year median of 11%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.8	19
Operating Profit Margin (%)	19.17	14.26
Net Profit Margin (%)	13.08	11

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on Asset is 6.64%, which is above its 5-year historical median of 5.47%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on capital employed is 12.4% for FY-2025, which is above its 5-year historical median of 9.86%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.6 Return on Equity (ROE) of Piramal Pharma Ltd?

Piramal Pharma Ltd Return on equity is 9.83% for FY-2025, which is above its 5-year historical median of 7.97%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Piramal Pharma Ltd?

Piramal Pharma Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Piramal Pharma Ltd?

Piramal Pharma Ltd Debt to cash flow from operations is 2.23, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Piramal Pharma Ltd?

Q.1 Promoter shareholding and pledge status of Piramal Pharma Ltd?

Promoters hold 34.86% of the Piramal Pharma Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Piramal Pharma Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Piramal Pharma Ltd vs industry peers?

Piramal Pharma Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 5.52%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	5.5
Gross Profit Growth (%)	58.9	13.9
Operating Profit Growth (%)	68.5	11.6
Net Profit Growth (%)	76.7	12.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.52	0.79
ROE (%)	9.83	9.17
ROCE (%)	12.4	11.52
Cash Conversion Cycle (days)	75.23	76

Valuation & price assessment

Q.1 Stock return of Piramal Pharma Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 35.02% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	35%	-13.5%

Q.2 Valuation ratios of Piramal Pharma Ltd vs historical?

The current P/E ratio of 34.13 is lower than its historical median of 47.58, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	34.13	47.58	31.09
Price to Book	2.93	2.95	2.85
Price to Sales	5	4.71	2.82
EV to EBITDA	18.42	25.74	15.99

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Check Before You Invest : Piramal Pharma Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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