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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Piramal Enterprises Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:47 pm

Market Cap 21,002 Cr.
Current Price 932
High / Low1,140/737
Stock P/E58.3
Book Value 1,182
Dividend Yield1.07 %
ROCE3.91 %
ROE1.25 %
Face Value 2.00
PEG Ratio-1.00

Data Source: screener.in

Competitors of Piramal Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Enbee Trade & Finance Ltd 16.8 Cr. 11.730.2/9.9010.8 21.20.00 %7.94 %7.61 % 10.0
Elixir Capital Ltd 66.4 Cr. 114139/40.14.34 83.41.09 %36.8 %37.2 % 10.0
Elcid Investments Ltd 0.07 Cr. 3.533.53/3.370.00 5,84,329708 %2.02 %1.54 % 10.0
Ekam Leasing And Finance Co Ltd 5.46 Cr. 9.1010.0/4.098.66 14.80.00 %10.5 %7.34 % 5.00
Easy Fincorp Ltd 23.0 Cr. 939939/814 5920.00 %0.37 %1.23 % 10.0
Industry Average15,277.16 Cr663.3183.025,570.835.60%16.50%27.10%7.57

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Revenue3,4022,9091,5743,8164,1632,1601,8942,8112,1322,8782,1932,4762,473
Interest9369859111,2941,2371,0441,0009599911,0351,0391,1031,167
Expenses1,6241,3591301,6462,9875793,7831,8181,3181,1651,0751,2702,851
Financing Profit841565533876-61538-2,89034-17867779103-1,544
Financing Margin %25%19%34%23%-1%25%-153%1%-8%24%4%4%-62%
Other Income27025364344267,787687110244218-3,3961,572
Depreciation1451491417319025273041373841712
Profit before tax9666695251,1371748,301-2,230113-19468259-3,335-684
Tax %153%20%19%22%14%2%31%-3,024%-1%25%18%29%120%
Net Profit-5105344268881518,155-1,5363,545-19650948-2,378137
EPS in Rs-25.3322.6017.5635.824.59341.66-64.36148.53-8.2121.312.14-105.836.10
Gross NPA %4.10%4.30%3.70%3.30%3.40%3.70%3.70%4.01%3.76%2.79%2.74%2.41%2.37%
Net NPA %2.10%2.20%1.80%1.80%1.60%1.80%1.30%1.69%1.93%1.47%1.48%1.11%0.83%

Last Updated: July 10, 2024, 8:40 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 8:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,5204,5035,1236,3428,50410,63111,88313,06812,8097,7268,98110,020
Expenses3,0863,8554,2334,7514,9975,4715,2646,8015,3381,9847,4346,351
Operating Profit4346488901,5903,5065,1606,6196,2687,4715,7411,5473,669
OPM %12%14%17%25%41%49%56%48%58%74%17%37%
Other Income1582142,9465792172601981,5557549638,560-1,775
Interest5751,0505119592,0312,9784,1005,3214,2094,2253,9944,344
Depreciation21024729025538247740152056174123829
Profit before tax-193-4353,0359541,3101,9642,3161,9823,4562,4055,991-3,278
Tax %-13%-14%11%5%17%-146%37%99%59%17%-66%49%
Net Profit-222-5012,8509051,2525,1201,464211,4131,9999,969-1,684
EPS in Rs-11.14-24.58139.7044.3561.39250.8170.261.0759.0880.57417.62-74.94
Dividend Payout %-133%-181%12%33%29%9%35%1,314%56%41%7%-13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-125.68%668.86%-68.25%38.34%308.95%-71.41%-98.57%6628.57%41.47%398.70%-116.89%
Change in YoY Net Profit Growth (%)0.00%794.54%-737.11%106.59%270.60%-380.35%-27.16%6727.14%-6587.10%357.23%-515.59%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:-3%
3 Years:-8%
TTM:13%
Compounded Profit Growth
10 Years:11%
5 Years:-27%
3 Years:-34%
TTM:-82%
Stock Price CAGR
10 Years:10%
5 Years:-1%
3 Years:-10%
1 Year:-13%
Return on Equity
10 Years:6%
5 Years:3%
3 Years:4%
Last Year:1%

Last Updated: July 24, 2024, 10:12 pm

Balance Sheet

Last Updated: July 10, 2024, 8:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital353535353536374545484845
Reserves10,6899,28711,70112,91414,84826,52627,18730,52633,97335,44131,01126,512
Preference Capital000000071000
Borrowings7,6889,5527,30616,27930,45144,16156,03742,16839,55755,53949,58353,611
Other Liabilities1,8322,6221,8911,7222,8752,0482,3332,1613,3218,6523,1102,437
Total Liabilities20,24421,49520,93330,94948,20972,77185,59474,90076,89699,68183,75282,605
Fixed Assets5,7096,1917,0657,5259,97310,72611,1976,4157,8609,1333,2633,409
CWIP3724912773558806474945176361,18860
Investments7,8779,4467,76816,31725,18128,84225,74719,44322,02924,85722,33212,513
Other Assets6,2855,3675,8236,75212,17632,55648,15648,52546,37164,50358,15166,683
Total Assets20,24421,49520,93330,94948,20972,77185,59474,90076,89699,68183,75282,605

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -1,570-1,604-2,207-6,956-10,057-15,967-11,6117,5163,6658,4431,37826
Cash from Investing Activity -1,4951,5356,193-594-2,376-1,747-8207,491-2,766-967-646-1,872
Cash from Financing Activity 3,281126-3,8657,54413,57018,65010,752-13,0192,072-6,774-3,2871,390
Net Cash Flow21657122-71,138936-1,6791,9882,970702-2,555-455

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow427.00639.00883.00-15.00-27.00-39.00-50.00-36.00-32.00-50.00-48.00-50.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
ROE %1%-2%-5%4%7%9%25%7%0%4%5%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters43.51%43.49%43.49%43.49%43.48%43.48%43.48%43.48%46.20%46.20%46.20%46.03%
FIIs34.97%35.31%35.03%34.54%32.05%31.25%28.67%26.04%19.69%17.19%16.97%16.19%
DIIs8.42%8.19%8.44%8.13%7.85%8.05%9.59%11.92%12.06%13.02%13.19%13.35%
Public12.58%12.53%12.65%13.47%16.10%16.71%17.75%18.06%21.56%23.09%23.14%23.94%
Others0.52%0.47%0.39%0.36%0.50%0.49%0.49%0.49%0.50%0.50%0.49%0.50%
No. of Shareholders1,34,7371,53,9601,68,2511,84,2702,59,6352,65,2132,68,9462,82,9322,95,1093,14,9133,15,9453,10,857

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Growth Fund1,655,8420.72153.411,016,2502024-07-2462.94%
Nippon India ELSS Tax Saver Fund1,290,0030.91119.511,016,2502024-07-2426.94%
Kotak Equity Arbitrage Fund - Regular Plan1,071,7500.3299.291,016,2502024-07-245.46%
Nippon India Arbitrage Fund1,016,2500.7994.151,016,2502024-07-240%
Quant Active Fund775,1751.0771.821,016,2502024-07-24-23.72%
Quant Mid Cap Fund733,1191.867.921,016,2502024-07-24-27.86%
Edelweiss Arbitrage Fund559,5000.6851.831,016,2502024-07-24-44.94%
HDFC Arbitrage Fund - Regular Plan537,0000.6249.751,016,2502024-07-24-47.16%
HDFC Arbitrage Fund - Wholesale Plan537,0000.6249.751,016,2502024-07-24-47.16%
Quant ELSS Tax Saver Fund524,6570.8748.611,016,2502024-07-24-48.37%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-72.82417.6880.7056.191.14
Diluted EPS (Rs.)-72.82416.3080.7055.681.14
Cash EPS (Rs.)-44.88406.5784.2972.502.30
Book Value[Excl.RevalReserv]/Share (Rs.)1182.151301.451543.551490.211287.71
Book Value[Incl.RevalReserv]/Share (Rs.)1182.151301.451543.551490.211287.71
Revenue From Operations / Share (Rs.)446.04374.37586.35567.92579.40
PBDIT / Share (Rs.)170.3769.26300.45347.06299.64
PBIT / Share (Rs.)133.4764.11272.56322.19276.58
PBT / Share (Rs.)-152.78234.7377.80138.2140.68
Net Profit / Share (Rs.)-81.78401.4256.4047.64-20.77
NP After MI And SOA / Share (Rs.)-74.94417.7180.5859.071.07
PBDIT Margin (%)38.1918.5051.2461.1151.71
PBIT Margin (%)29.9217.1246.4856.7347.73
PBT Margin (%)-34.2562.7013.2624.337.02
Net Profit Margin (%)-18.33107.229.618.38-3.58
NP After MI And SOA Margin (%)-16.80111.5713.7410.400.18
Return on Networth / Equity (%)-6.3332.095.414.100.08
Return on Capital Employeed (%)5.002.478.0111.3912.17
Return On Assets (%)-2.0311.901.921.720.03
Long Term Debt / Equity (X)1.230.961.230.860.69
Total Debt / Equity (X)2.021.591.560.960.97
Asset Turnover Ratio (%)0.120.090.040.030.03
Current Ratio (X)3.293.581.301.490.68
Quick Ratio (X)3.293.581.221.390.63
Inventory Turnover Ratio (X)0.000.000.380.570.19
Dividend Payout Ratio (NP) (%)-43.947.9040.9523.692316.97
Dividend Payout Ratio (CP) (%)-86.577.8030.4216.67102.28
Earning Retention Ratio (%)143.9492.1059.0576.31-2216.97
Cash Earning Retention Ratio (%)186.5792.2069.5883.33-2.28
Interest Coverage Ratio (X)0.880.411.601.861.27
Interest Coverage Ratio (Post Tax) (X)1.061.381.341.240.80
Enterprise Value (Cr.)68230.3360907.01101809.1765071.8544659.67
EV / Net Operating Revenue (X)6.816.827.285.083.42
EV / EBITDA (X)17.8336.8514.208.316.61
MarketCap / Net Operating Revenue (X)1.901.813.733.081.62
Retention Ratios (%)143.9492.0959.0476.30-2216.97
Price / BV (X)0.710.521.471.220.72
Price / Net Operating Revenue (X)1.901.813.733.081.62
EarningsYield-0.080.610.030.030.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 870.60

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 6.59% compared to the current price 932

Intrinsic Value: 365.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 60.82% compared to the current price 932

Last 5 Year EPS CAGR: -58.05%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Piramal Enterprises Ltd:
    1. Net Profit Margin: -18.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 5.00% (Industry Average ROCE: 16.50%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: -6.33% (Industry Average ROE: 27.10%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.06
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.29
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 58.3 (Industry average Stock P/E: 83.04)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 2.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Piramal Enterprises Ltd. is a Public Limited Listed company incorporated on 26/04/1947 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24110MH1947PLC005719 and registration number is 005719. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 2225.68 Cr. and Equity Capital is Rs. 47.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Piramal Ananta, Agastya Corporate Park, Opposite Fire Brigade, Kamani Junction, Mumbai Maharashtra 400070complianceofficer.pel@piramal.com
http://www.piramalenterprises.com
Management
NamePosition Held
Mr. Ajay G PiramalChairman
Dr.(Mrs.) Swati A PiramalVice Chairperson
Mr. Kunal BahlIndependent Director
Ms. Anjali BansalIndependent Director
Mr. Puneet DalmiaIndependent Director
Mr. Gautam DoshiIndependent Director
Mr. Anita GeorgeIndependent Director
Mr. Rajiv MehrishiIndependent Director
Mr. Asheet MehtaIndependent Director
Mr. Suhail NathaniIndependent Director
Mr. Anand PiramalNon Executive Director
Ms. Nandini PiramalNon Executive Director
Mr. Vijay ShahNon Executive Director
Mr. Shikha SharmaIndependent Director

FAQ

What is the latest fair value of Piramal Enterprises Ltd?

The latest fair value of Piramal Enterprises Ltd is ₹870.60.

What is the Market Cap of Piramal Enterprises Ltd?

The Market Cap of Piramal Enterprises Ltd is 21,002 Cr..

What is the current Stock Price of Piramal Enterprises Ltd as on 24 July 2024?

The current stock price of Piramal Enterprises Ltd as on 24 July 2024 is 932.

What is the High / Low of Piramal Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Piramal Enterprises Ltd stocks is 1,140/737.

What is the Stock P/E of Piramal Enterprises Ltd?

The Stock P/E of Piramal Enterprises Ltd is 58.3.

What is the Book Value of Piramal Enterprises Ltd?

The Book Value of Piramal Enterprises Ltd is 1,182.

What is the Dividend Yield of Piramal Enterprises Ltd?

The Dividend Yield of Piramal Enterprises Ltd is 1.07 %.

What is the ROCE of Piramal Enterprises Ltd?

The ROCE of Piramal Enterprises Ltd is 3.91 %.

What is the ROE of Piramal Enterprises Ltd?

The ROE of Piramal Enterprises Ltd is 1.25 %.

What is the Face Value of Piramal Enterprises Ltd?

The Face Value of Piramal Enterprises Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Piramal Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE