Buy Piramal Pharma; target of Rs 290: ICICI Securities

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Piramal Pharma's CDMO segment is expected to drive growth, with a 36.4% YoY increase in revenue, driven by healthy commercial demand and strong order inflows.
  • The company's CHG segment is also expected to contribute to growth, with a 31.8% YoY increase in revenue, driven by traction in ex-US markets and the consolidation of the Kenalog brand.
  • Piramal Pharma's India Consumer Healthcare (ICH) segment is expected to grow, driven by strong performance of power brands and e-commerce.
  • The company's focus on innovation, cost discipline, and capacity expansion is expected to drive margin expansion and revenue growth.

Thesis Validation Checklist

  • Investors should watch for continued growth in the CDMO segment, driven by strong order inflows and commercial demand.
  • The company's ability to expand its CHG segment, driven by traction in ex-US markets and the consolidation of the Kenalog brand, will be crucial.
  • Piramal Pharma's focus on innovation, cost discipline, and capacity expansion will be key to driving margin expansion and revenue growth.
  • The company's debt levels and ability to manage its leverage will also be important to monitor. Overall, Piramal Pharma's strong Q2FY27 performance and growth drivers make it an attractive investment opportunity, with a BUY rating and a target price of INR 290.