Piramal Pharma - Differentiated Play In CDMO, Hospital Generics: Motilal Oswal

With SEBI approval in place, the listing of de-merged Piramal Pharma from Piramal Enterprises Ltd. is today.

<div class="paragraphs"><p>Namesign of Piramal Enterprises Ltd. (Source: BQ Prime)</p></div>
Namesign of Piramal Enterprises Ltd. (Source: BQ Prime)

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Motilal Oswal Report

With Securities and Exchange Board of India approval in place, the listing of de-merged Piramal Pharma Ltd. from Piramal Enterprises Ltd. is today

Piramal Pharma has a differentiated business model, comprising contract development and manufacturing (59% of FY22 sales), complex hospital generics (30% of FY22 sales), and India consumer products (11% of FY22 sales).

While Piramal Pharma has been facing business headwinds over the past 15-18 months, we expect-

  1. resource hiring to revive the CDMO business and

  2. the easing of Covid-related restrictions to drive the complex hospital generics segment. 

Piramal Pharma has exhibited superior execution, driving 48% YoY growth in India consumer products segment sales.

We expect an Ebitda compound annual growth rate of 26% over FY22-24, led by 10%/12% sales CAGR in the CDMO/complex hospital generics segment and strong operating leverage.

Click on the attachment to read the full report:

Motilal Oswal Piramal Pharma Update.pdf


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