Piramal Enterprises' Pharma Demerger - Value Unlocking Underway: Motilal Oswal
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Piramal Enterprises Ltd.’s board approved the simplification of its corporate structure by creating two separate listed entities in financial and pharmaceutical services, subject to shareholder, creditor, and regulatory approvals.
The demerger would optimise the capital structure for each business and enable both to independently pursue growth opportunities.
We remain positive on Piramal Enterprises on the back of:
its fully integrated contract development and manufacturing organisation presence,
niche portfolio, with global distribution in the complex hospital generics space,
strong brands with an established pan-India distribution network,
independent financial services business, which is simpler to understand and execute relative to it being housed under a conglomerate structure,
strong opportunity for Piramal Capital and Housing Finance Ltd. to scale up DHFL’s mortgage franchise and leverage the platform to effectively cross-sell its other organic retail products to its native customer pool.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.