Piramal Pharma shares surged 3% after Goldman Sachs initiated coverage with a ‘Buy’ rating and a target price of ₹275. The global brokerage firm highlighted substantial operating and financial leverage as the key catalyst for a potential rerating, positioning the stock as a top pick in the Indian pharma space.
Goldman Sachs projects a strong growth trajectory for Piramal Pharma, expecting profit before tax (PBT) margins to rise sharply from around 3% in FY24 to over 16% by FY28. The report outlines three primary drivers for this transformation:
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CDMO Growth: A sustainable uptick in the Contract Development and Manufacturing Organisation (CDMO) business is expected post-FY26, driven by global outsourcing trends and enhanced client demand.
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CHG Capacity Ramp-Up: Increased capacity in the Complex Hospital Generics (CHG) segment from FY26 will support higher volumes and improved profitability.
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ICH Segment Turnaround: Revival in the India Consumer Healthcare (ICH) division is also projected to contribute significantly to the bottom line.
Goldman views Piramal as one of the best-leveraged plays in India’s healthcare sector, benefiting from the structural shift towards outsourced pharma services. With top-quartile profit growth potential, Piramal Pharma stands out as a strong long-term investment bet.
Piramal Pharma shares opened at ₹224.25 today, reaching a high of ₹225.50 and a low of ₹221.02. The stock is trading well above its 52-week low of ₹133.70 but remains below the 52-week high of ₹307.90.
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