Shares of Piramal Enterprises Ltd. fell on Thursday after its fourth-quarter profit missed analysts’ estimates by a wide margin, prompting most brokerages to cut both ratings and target prices on the stock.
The company reported a net profit of Rs 137 crore in the quarter ended March 2024, compared with a loss of Rs 196 crore a year earlier, according to an exchange filing. The consensus estimate was higher than the reported profit.
NIM Down 100 bps YoY, AUM Declines 2.8% QoQ
Piramal Enterprises reported a decline of 100 basis points in net interest margin (NIM) on a year-on-year basis. Additionally, the company’s assets under management (AUM) decreased by 2.8% on a quarter-on-quarter basis.
As of 1:20 pm, the shares were trading 7.02% lower at ₹832.30 on the National Stock Exchange (NSE).
Piramal Enterprises’ weaker-than-expected fourth-quarter earnings, with a significant miss on analysts’ estimates, led to a sell-off in the company’s shares. The decline of 100 basis points in NIM compared to the previous year and a 2.8% quarterly drop in AUM further contributed to the negative sentiment, prompting brokerages to cut their ratings and target prices on the stock. Consequently, Piramal Enterprises’ shares plunged 7% in the trading session on Thursday.
