Piramal Pharma shares surged 3% after JM Financial initiated coverage with a ‘Buy’ rating and a target price of ₹340, indicating strong upside potential. The brokerage expects a 23%+ EBITDA CAGR over the next three years, supported by steady cash generation.
Currently trading at 21x/17x FY26/27 EV/EBITDA, Piramal Pharma is at a 38% discount to listed peers, making it an attractive investment.
A key growth driver is the Contract Development and Manufacturing Organization (CDMO) segment, its largest revenue contributor, projected to achieve a 17% CAGR over the next three years. Growth will be fueled by newly commercialized molecules and a recovery in the US biotech sector from H2 FY25.
As per JM Financial, with improving US market conditions and strategic execution, Piramal Pharma is poised for robust revenue growth and margin expansion, offering significant long-term opportunities for investors.
As of 9:32 am, Piramal Pharma shares were trading 2.83% higher at Rs 258.35 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
