Goldman Sachs has initiated coverage on Piramal Pharma with a ‘Buy’ rating and a target price of ₹275, citing substantial operating and financial leverage as the key catalyst for a rerating.
According to Goldman, Piramal is well-positioned to deliver top-quartile profit growth, with profit before tax (PBT) margins forecast to surge from ~3% in FY24 to over 16% by FY28E. The brokerage identifies three core drivers for this transformation:
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A strong, sustainable uptick in the CDMO business post-FY26;
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Ramping up of CHG capacity from FY26;
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A turnaround in the ICH segment.
The stock is seen as one of the best leveraged plays in the Indian healthcare and pharma space to benefit from structural growth in outsourced pharma services.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
