Shares of Piramal Pharma were in focus after Kotak Securities reiterated its ‘Buy’ rating on the stock and raised the target price to Rs 325 (from Rs 305 earlier), implying a potential upside of over 60% from current levels.
The brokerage highlighted that Piramal Pharma (PPL) stands to benefit from the upcoming launch of Obicetrapib, a novel cholesterol-lowering therapy developed by New Amsterdam Pharma, especially after the recent correction in the pharma sector. Analysts believe PPL will gain from contract manufacturing opportunities linked to Obicetrapib production, which could enhance its earnings visibility over FY2026–28.
Kotak Securities noted that PPL’s contract with New Amsterdam Pharma and the associated manufacturing of Obicetrapib and Ezetimibe APIs positions it strongly in the hypercholesterolemia space. The brokerage expects an incremental EBITDA benefit of 2–3% from this deal.
The report emphasized that despite challenges in the sector, Piramal Pharma’s medium-term growth outlook remains robust, backed by new molecule opportunities, margin improvement, and normalization in its CDMO business.
Kotak’s revised valuation assigns a fair value of Rs 325 per share, maintaining its positive stance on the company.
