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Piramal Enterprises Ltd. Stock Analysis

Large Cap
Evaluated by 3257 users | BSE: 500302 | NSE: PEL |
Pharmaceuticals & Drugs
Piramal Enterprise, formerly known as Nicholas Piramal, is one of the largest pharmaceutical companies in India. Being part of Piramal Group, its healthcare division contributes 50% to group’s revenue. Besides healthcare, the Piramal Group has business interests in areas of glass...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Piramal Enterprises Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 19.48%0.23%0.52%0.53%6.67%6.14%7.07%12.36%6.44%5.92%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6732,1593,5204,5035,1236,3428,50410,63113,21514,423
Y-o-Y Gr. Rt.-29%63.1%27.9%13.8%23.8%34.1%25%24.3%9.1%
Adjusted EPS (Rs.) 84.11-6.84-18.04-35.8151.1145.0968.37275.44110.3639.5
Y-o-Y Gr. Rt.--108.1%NANANA-11.8%51.6%302.9%-59.9%-64.2%
Book Value per Share (Rs.) 684.22632.35603.18524.3660.13728.33837.121,438.631,440.681,355.42
Adjusted Net Profit 1,455-122-321-6379098021,2165,0862,085891
Net Op. Cash Flow (Rs. Cr.) -4,537-685-1,570-1,604-2,207-6,956-10,057-15,967-11,6117,516
Debt to Cash Flow from Ops -0.17-2.99-4.9-5.95-3.31-2.34-3.03-2.77-4.835.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Piramal Enterprises Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 27%23%19.3%9.1%
Adjusted EPS -8.1%-5%-16.7%-64.2%
Book Value per Share 7.915.517.4-5.9
Share Price 16.2% 6.8% -20.6% -21%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.52-1.05-2.92-6.358.636.58.7424.557.753.08
Operating Profit Margin (%) -47.37-0.0411.8514.3117.3626.7341.2348.5353.6856.48
Net Profit Margin (%) 87-5.46-8.83-14.0514.639.5812.2945.213.342.76
Debt to Equity 0.060.180.721.020.621.262.051.662.061.38
Working Capital Days 1,5981,8689927626655835508031,1171,229
Cash Conversion Cycle 887148475538168-7-7
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 46.06%
Institutions 39.13%
Non-Institutions 14.81%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Piramal Enterprises Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Piramal Enterprises Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Piramal Enterprises Ltd.'s performance infers:

Piramal Enterprises Ltd. earnings have declined by -5%, whereas share price has appreciated 6.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Piramal Enterprises Ltd. share prices over the last 10 years. Here is what we found out:

Piramal Enterprises Ltd. share price has appreciated 10.3% annually over the past ten years.

Piramal Enterprise, formerly known as Nicholas Piramal, is one of the largest pharmaceutical companies in India. Being part of Piramal Group, its healthcare division contributes 50% to group’s revenue. Besides healthcare, the Piramal Group has business interests in areas of glass manufacturing, retail and real estate.

Piramal Healthcare operates two divisions namely healthcare solutions and

Piramal Enterprise, formerly known as Nicholas Piramal, is one of the largest pharmaceutical companies in India. Being part of Piramal Group, its healthcare division contributes 50% to group’s revenue. Besides healthcare, the Piramal Group has business interests in areas of glass manufacturing, retail and real estate.

Piramal Healthcare operates two divisions namely healthcare solutions and pharma solutions. PHL is one of the largest custom manufacturing companies with global presence in North America, Europe and Asia.

Today, operating across multiple verticals within healthcare, life sciences and drug delivery systems, healthcare information management, financial services and contract manufacturing services, the company has diversified further.

Manufacturing facilities

Healthcare solutions- Headquartered in Mumbai, the company has manufacturing facilities located at Baddi in Himachal Pradesh and Mulund in Maharashtra.

Pharma solutions- PHL’s manufacturing units are located at Mahad and Thane in Maharashtra, Ennore in Tamil Nadu, Digwal in Andhra Pradesh, Pithampur in Madhya Pradesh, Morpeth, Grangemouth, Huddersfield and Billingham in the U.K. and Torcan in Canada.

Products and services

Pharma Solutions- This division is engaged in manufacturing of API and formulations in nine therapeutic areas. The company operates one of the leading custom manufacturing businesses in the world, due to this PHL offers a full lifecycle partnership to small/virtual and big pharma. It provides services such as clinical phase APIs, clinical phase formulations and commercial APIs. It also offers packaging solutions.

Healthcare solutions- Under this, PHL has developed multi-ingredient formulations and single-ingredients products.

PHLacquired US-based RxElite Holdings, the inhalation anaesthetic gas distribution arm of RxElite. The acquisition gives Piramal ownership of Holdings' sales and distribution network in the US.

Important events

2011 - Piramal's Pharma Solutions manufacturing site at Grangemouth, Scotland became the world’s first contract supplier at commercial scale for ADCs.

Fortune 500 ranks Piramal Healthcare in the top-50 largest corporations across India.

Ranked #5 out of the top 10 pharmaceutical contract manufacturers worldwide and #1 in India by the ‘UN Conference on Trade and Development’s World Investment Report 2011’.

2012 - Piramal Healthcare Limited renamed to Piramal Enterprises Limited.
Piramal Enterprises Limited acquires molecular imaging development portfolio of Bayer Pharma.

Platinum Award for Manufacturing Excellence by Frost & Sullivan in partnership with the Economic Times in 2012.
                                                                                                     
2013 - Piramal Water (Sarvajal) honoured with ‘Enabling Technology Award of the Year 2013’ by Frost & Sullivan

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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