Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Piramal Enterprises - Consolidating wholesale mortgage; going LIVE with multi-asset retail lending - ICICI Securities

Posted On: 2020-10-30 08:25:53 (Time Zone: Arizona, USA)

Piramal Enterprises' (PEL) preparedness to navigate the challenging real estate environment is visible in its fortified balance sheet strength: i) enhanced capital base - 34% CAR; ii) reduced 'net debt to equity' - 2x; iii) superior NIMs - 6% plus; and iv) providing for 5.9% of advances. This further imparts confidence especially when early trends are indicating that stress may settle lower than what was modelled under the worst-case scenario. Consequently, Q2 was the second consecutive quarter of no contingency buffer creation. Also, PEL is all set to go LIVE with its multi-asset secured retail digital platform next month, which will drive growth. Pharma business too reported strong performance with 9.5% YoY growth. Retaining the target price at Rs1,470, we upgrade PEL to BUY in view of the recent correction in stock price.

- CDMO leads pharma business performance: PEL reported 9.5% revenue growth in Q2FY21 driven by 19.3% YoY growth in the CDMO segment. Growth in CDMO was driven by strong orderbooks and approvals for four NCEs. Although the critical care segment declined 8.4% YoY, it recovered 35.2% QoQ. This was due to some recovery in the postponed elective surgeries raising demand for anesthesia products. OTC reported a healthy growth of 25.0% YoY with improving consumer sentiment and timely launch of Covid protection products (sanitisers, masks, etc.). We remain positive on the growth potential and expect the pharma segment revenues to grow at a CAGR of 7.9% over FY20-FY23E.

- Consolidating wholesale mortgage book; stress estimated to be lower: Loanbook stood at Rs515.2bn, broadly flat QoQ and down 3% YoY. Early trends indicate better performance of its developer clients - their project sales are back to 100% of pre-Covid levels, their collections from homebuyers are at 82% of pre-Covid, construction has commenced at nearly 100% of sites, etc. Company has not given any guidance on restructuring and expects clarity to emerge by Dec'20. However, it pointed out that existing provisions are adequate for potential restructuring. We are building-in a credit cost of 2% each year for FY21E and FY22E.

- To go LIVE with multi-asset retail lending: Having onboarded its senior management team, PEL will go LIVE with launch of secured retail lending this November with four products, seven variants, 26 locations and two partnerships. By next year, it will activate almost 40 locations for its retail lending platform. It is looking to carve out a differentiated niche targeting mass, affluent and affordable housing segments in tiers-2&3 cities with strategic partnerships and leveraging digital to its core. It aims at 50:50 mix between retail and wholesale portfolios in the medium term.

- Succession planning of independent directors; smooth functioning of Board: Being cognizant of the imminent maximum tenure guidelines and to ensure continued smooth functioning of the Board, it has had discussions relating to succession planning for Independent directors. In this regard, three independent directors - Mr. Keki Dadiseth (75 years), Dr. R. A. Mashelkar (77) and Professor Govardhan Mehta (77) - have tendered their resignations.

Shares of PIRAMAL ENTERPRISES LTD. was last trading in BSE at Rs.1261.55 as compared to the previous close of Rs. 1215.25. The total number of shares traded during the day was 49182 in over 4000 trades.

The stock hit an intraday high of Rs. 1271.2 and intraday low of 1223.5. The net turnover during the day was Rs. 61518277.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Maintain ADD on Symphony - Domestic in line; RoW improving - HDFC Securities

Maintain ADD on Multi Commodity Exchange - Taking a pause; recovery awaited - HDFC Securities

Maintain ADD on DCB Bank - Provisioning cushion emerges ahead of expectations - HDFC Securities

Maintain BUY on Birla Corporation - Margin buoyancy continues - HDFC Securities

ADD on SRF - Returning to normalcy - HDFC Securities

HDFC Securities - Maintain BUY on UltraTech Cement - Solid show!

Ajanta Pharma (Initiating Coverage) - Gearing for the next leap - HDFC Securities

BUY on SBI Life Insurance - Growth returns - HDFC Securities

Kajaria Ceramics (Initiating Coverage) - Galloping ahead - HDFC Securities

UltraTech Q3 FY21 - YES Securities

HDFC Life Q3 FY21 - YES Securities

SBI Life - Q3 FY21 - YES Securities

Aavas Financiers Q3 FY21 - Conference Call Takeaways - YES Securities

Birla Corp Q3 FY21 - YES Securities

ADD on Reliance Industries - Sailed through the tough times! - HDFC Securities

Grasim Industries - Aspiring for strong no.2 position in paints - ICICI Securities

Kewal Kiran Clothing - Better execution with flat EBITDA YoY - ICICI Securities

Mphasis - DXC will continue to be key in the near term - ICICI Securities

HDFC Securities: Indian Chemical Sector (Sector Update) - Steering well through the pandemic!

UltraTech Cement - Earnings upgrade continues; ripe for rerating - ICICI Securities

Multi Commodity Exchange of India - Lower turnover impacted operating performance - Q3FY21 - ICICI Securities

SBI Life Insurance Company - Strong performance, attractive valuations (<2 FY23 P/EV) - ICICI Securities

Biocon Limited - Slow recovery in biosimilars - ICICI Securities

HDFC Life Insurance Company - Not only - but also - about protection - ICICI Securities

DCB Bank - Gradually approaching normalcy - ICICI Securities

Aurobindo Pharma - Approval for 3 products under PLI Scheme - ICICI Securities

Yes Bank - Aggravating asset quality fears outweigh operating performance turnaround - ICICI Securities

JSW Steel - Peak margins expected in Q4FY21 - ICICI Securities

Aavas Financiers - Quality intact; premium to sustain - ICICI Securities

Supreme Industries - Q3FY21 First Cut - ICICI Direct

Polycab India Ltd - Q3FY21 First Cut - ICICI Direct

DCB Bank - Q3FY21 First Cut - ICICI Direct

Q3FY21 Result update - Symphony Ltd. - ICICI Direct

Ultratech Cement - Q3FY21 First Cut - ICICI Direct

Oberoi Realty - Q3FY21 First Cut - ICICI Direct

HDFC Life Insurance - Q3FY21 First Cut - ICICI Direct

SRF Limited - Chemical biz's good performance may continue - ICICI Securities

Multi Commodity Exchange of India - Lower turnover impacted operating performance - ICICI Securities

Q3FY21 Company update - Zensar Technologies - ICICI Direct

JSW Steel - Q3FY21 First Cut - ICICI Direct

Q3FY21 Result update - Biocon Ltd - ICICI Direct

Symphony Ltd - Q3FY21 First Cut - ICICI Direct

Crompton Greaves Consumer Electricals - Q3FY21 First Cut - ICICI Direct

Q3FY21 Result update - Bajaj Finserv - ICICI Direct

Q3FY21 Result update - Bajaj Auto - ICICI Direct

Quant Pick - Hero MotoCorp - ICICI Direct

Company update - Cyient Ltd - Q3FY21 - ICICI Direct

Covid Recovery Pulse - Auto retail taper off in new year 2021 - ICICI Direct

Q3FY21 Result update - Asian Paints - ICICI Direct

Company update - Mphasis Ltd - Q3FY21 - ICICI Direct

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020