Piramal Enterprises Q1 Review - Near Term Notable Triggers Priced In: ICICI Securities
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ICICI Securities Report
Piramal Enterprises Ltd.’s Q1 FY22 performance surprised positively on stable stress pool (stage-II/III and restructuring pool) despite challenging environment.
No further credit provisioning was required (for fifth consecutive quarter) after creating buffer in Q4 FY20.
The strategy of rationalising wholesale exposure and ramping up secured mass retail lending continued.
This aided in-line consolidated net profit of Rs 5.38 billion in Q1 FY22 and stable revenue of Rs 29 billion.
Piramal Enterprises' performance in pharma segment was strong with 31.2% YoY revenue growth (albeit on a weak base).
Stock has doubled in past six months with several notable triggers:
robust performance of pharma business,
successful consolidation of wholesale mortgage book reducing concentration risk.
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