Piramal Enterprises Limited
Piramal Enterprises Limited is a leading diversified Non-Banking Financial Company (NBFC) registered with Reserve Bank of India (RBI), with presence across retail lending, wholesale lending, and fund-based platforms. Piramal Group is a global business conglomerate with diverse interests in pharma, financial services and real estate. The Group has offices in over 30 countries and a global brand presence in more than 100 markets, and operates with over 10,000 people worldwide from 21 diverse nationalities. Piramal Enterprises Limited (PEL) is one of India’s leading diversified non-banking financial companies (NBFC) with assets worth ~$10 billion, with a network of over 400 branches across 26 states/Union Territories, offering a wide range of financial products and solutions across retail and wholesale lending, fund based platforms and investments.
Key Business
Piramal Enterprises Ltd.
Piramal Realty
Piramal Pharma Ltd.
Shareholding Pattern
–PUBLIC GROUP
–PROMOTER GROUP
–Employee Trust
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 10,110 | 8,981 | 7,726 |
| Sales Growth % | 12.57% | 16.26% | -39.69% |
| Expenses | 6,351 | 7,434 | 1,984 |
| Operating Profit | 3,759 | 1,547 | 5,741 |
| OPM % | 37% | 17% | 74% |
| Net Profit | -1,684 | 9,969 | 1,999 |
| EPS in Rs | -74.94 | 417.62 | 80.57 |
Synopsis of Financials
- Growth business grew by 55% year-on-year to INR 54,273 crores.
- Retail AUM grew by 49% year-on-year to INR 47,927 crores.
- Mortgage AUM stands at INR 32,612 crores, up 38% year-on-year.
- Wholesale 2.0 AUM has grown to INR 6,347 crores.
- Legacy AUM reduced from INR 18,693 crores to INR 14,572 crores during the quarter.
Final Outlook
Piramal Enterprises reported a net loss of ₹1,683 crore for the fiscal year 2023-24, compared to a profit of ₹9,969 crore the previous year. This significant downturn was accompanied by a 20% decrease in net interest income, which fell to ₹3,022 crore from ₹3,757 crore in FY23. The company’s Q4 results showed a 6% decline in stock price following the announcement. Despite steady interest income of ₹1,944 crore for the quarter, net interest income dropped by 18% year-on-year to ₹755 crore. Operating expenses also increased, contributing to the overall financial strain. Piramal Enterprises Limited (PEL) has been experiencing mixed performance, reflecting a complex financial landscape. As of June 2024, the stock price was around ₹882.5.
Debt
Low probability of default in next 12 months
Dividend
Company doesn’t offer attractive dividend returns
PB ratio
Stock is trading at a book value higher than the sector
Holdings
FIIs have decreased holding in the recent quarter.
Piramal Enterprises is in a period of transformation, marked by strategic mergers and a shift in business focus. While the company has reported significant losses and faces operational challenges, these moves may position it for improved performance in the future. Investors should consider the high P/E ratio, low ROE, and ongoing strategic changes when evaluating this stock.
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