Purpose: £ 1,250
CMP: £ 1.126.10
We had an interaction with the senior management team of Piramal Enterprises (Piell), represented by Jairam Sridharan, CEO, Retail Lending and MD of Piramal Finance, to gain insight into the future growth plans of the company and other strategic
Piel now has more faith in the Retail business strategy and has emphasized that old challenges are largely behind. The company is planning to further reduce its Legacy wholesale loans from INR70B to £ 3,500-4,000 crore, in the following year, without any impact on its assets.
Moreover, it expects to receive a deferred consideration of $ 120 million from the sale of pyramal imaging within the next 3-6 months. This, together with recoveries from his AIF, will further improve the company’s ability to accelerate the decline of the Legacy Aum.
We believe that the phase of profit volatility is now lagging behind comfortably and that there will be no negative surprises or volatile quarters
Although we anticipate greater profit stability and improved prospects in the future, the return statistics remain modest, with Roa and Roe estimated at 1.9 percent and 8 percent for FY27 respectively. We appreciate the credit company at 0.8x FY27E p/BV. Repeat our neutral rating on the shares with a revised TP of £ 1,250 (based on Mar’27 SOTP).
Published on June 24, 2025
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