India's Piramal Pharma gains after Jefferies raises target price

Piramal Pharma (Mumbai)

25/09/2024 07:38

** Shares of Piramal Pharma  PIRM.NS  up 5% to 228.6 rupees,
its biggest one-day gain in more than 2 weeks
    ** Co's contract manufacturing division's turnaround is
progressing well, hospital generics business should be back to
growth from 2HFY25, Jefferies says
    ** Raises TP to 260 rupees from 195 rupees; maintains 'Buy'
rating 
    ** Co aims to grow revenue to over $2 bln with 25% EBITDA
margin by FY2030
    ** This implies rev/EBITDA CAGRs of 12.2%/20.3%, which is
achievable - Jefferies
    ** Raises FY25/26 EBIDTA estimates by 4-10% on better
contract manufacturing margins 
    ** Analysts' avg rating on stock is "Buy" (with median TP
245 rupees) vs "Hold" for peer IPCA Laboratories  IPCA.NS  (with
median TP 1,350 rupees)

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))