Piramal Enterprises Q2 Review - Steady Quarter, Muted Earnings Without Any Big Ticket One Offs: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Over the past two years, Piramal Enterprises Ltd. has strengthened its balance sheet by running down its Wholesale loan book; improved texture of its borrowings (driving lower cost of borrowings); and fortified itself against contingencies with expected credit loss provisions at 4.0% of assets under management.Piramal is cognizant of the sectoral stress in personal loans and calibrated its disbursements in unsecured loans during the last two quarters. Over the next two years, we expect the company to make meaningful inroads into retail, led by mortgages/leave on average pay and complemented by a good mix of unsecured loans. Product diversification within retail will help Piramal deliver strong growth and reduce concentration risks. We expect Piramal to deliver ~2.1% return on assets and 7.5% return on equity in FY26E. We acknowledge that Piramal possesses pockets of value:deferred tax assets relating to the time of Dewan Housing Finance Ltd. acquisition,recoveries from written-off exposures, andfee income levers that it can leverage to enhance profitability.We have a target multiple of 0.8 times September 2025 price/book value for the lending business. We reiterate our 'Buy' rating on the stock with a revised target price of Rs 1,200 (premised on September 2025 SoTP)..Click on the attachment to read the full report:.Vinati Organics Q2 Results Review - Destocking Weighs On Earnings; Long-Term Guidance Intact: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Piramal Enterprises Q2 Review - Steady Quarter, Muted Earnings Without Any Big Ticket One Offs: Motilal Oswal

We believe that Piramal Enterprises might further deploy the excess capitalisation on its balance sheet for some M&A

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