Piramal Pharma hits all time high, soars 13%; here's what's driving stock

Piramal Pharma's company's revenue for the quarter under review stood at Rs 2,242 crore as compared to Rs 1,911 crore which implies an increase of 17 per cent Y-o-Y

Piramal Pharma shares jumped 13 per cent in trade on Thursday (October 24) and registered an all time high of Rs 245 per share on BSE. The company in its Q2 posted a 350 per cent year-on-year (Y-o-Y) rise in its net profit. 

 

At around 10:54 AM, Piramal Pharma shares were up 12.71 per cent at Rs 244.25 per share. In comparison, the BSE Sensex was flat at 80,080.23 at around the same time. The market capitalisation of the company at around the same time stood at Rs 32,381.40 crore. 

 

In its Q2 results, Piramal Pharma reported a consolidated net profit of Rs 23 crore in the second quarter as compared to Rs 5 crore in the July-September 2023 quarter (Q2FY24).

 

 

The company's revenue for the quarter under review stood at Rs 2,242 crore as compared to Rs 1,911 crore which implies an increase of 17 per cent Y-o-Y. 

 

Piramal Pharma's Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 403 crore for Q2 as compared to Rs 315 crore a year ago, up 28 per cent. 

 

The company's Ebitda margin for the quarter stood at 18 per cent as compared to 16 per cent Y-o-Y.

Management commentary

The company in its statement said that it will sustain growth with planned expansion and steady volume growth. 

 

"To sustain this growth momentum and to capitalise on rising demand for sterile fill-finish capabilities, we have announced a US$80Mn expansion plan at our Lexington facility which is expected to get complete by end FY27," said Nandini Piramal, chairperson, Piramal Pharma. 

 

Shea added: In our Consumer Healthcare (CHG) business, we are witnessing steady volume growth in Inhalation Anesthesia products in the US and Emerging Markets. In our ICH business, we continue to see a robust growth in our power brands and e-commerce sales.

 

Over the long term, the company remains committed to achieving their financial goals of US$2 bn revenue with 25 per cent Ebitda margin and 1x net debt / Ebitda by FY30.

 

Piramal Pharma Limited offers a portfolio of differentiated products and services through its 17 global development and manufacturing facilities and a global distribution network in over 100 countries. Piramal Pharma includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organisation; Piramal Critical Care (PCC), a complex hospital generics business; and the India Consumer Healthcare business, selling over-the-counter consumer and wellness products. 

 

In the past one year, Piramal Pharma shares have gained 137.3  per cent against Sensex's rise of 25 per cent.