Piramal Enterprises Performance
Fundamentals of Piramal Enterprises
|P/E Ratio (TTM)||5.66|
|Debt to Equity||1.73|
Financials of Piramal Enterprises
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||113.48||-193.69||681.93||58.92|
|EPS in Rs||148.55||-8.21||21.32||2.03|
About Piramal Enterprises
Piramal Enterprises Limited (PEL) is a diversified non-banking financial corporation in India. It is a part of the Indian multinational conglomerate, Piramal Group that operates in various sectors, including healthcare, life sciences, drug discovery, financial services, alternative investments, and real estate.
In the early 1980s, Ajay Piramal assumed leadership of the Piramal Group. Notably, in 1984, the group acquired Gujarat Glass Limited, a pharmaceutical and cosmetic packaging manufacturer.
In 1988, Piramal Group acquired Nicholas Laboratories, which became highly valued in the pharmaceutical industry by 2010. They continued to expand their presence through several business unit acquisitions over the years.
In 2006, Piramal Group acquired Pfizer’s UK manufacturing facility in Morpeth and established the Piramal Foundation, a philanthropic arm of the group.
In 2007, Piramal Group entered into a significant deal with Merck Pharmaceuticals for drug development and discovery. In 2008, they signed another drug development deal with Eli Lilly and Company. The company Nicholas Laboratories was later rebranded as Piramal Healthcare Ltd.
In 2010, Piramal Healthcare sold its domestic formulations business to Abbott for a substantial sum, making it one of the most expensive pharmaceutical deals. Additionally, Piramal Healthcare divested its diagnostics chain, Piramal Diagnostic Services, to SRL. In the same year, Piramal Group ventured into real estate with Piramal Realty.
The conglomerate continued to evolve, with Piramal Healthcare being renamed Piramal Enterprises Ltd in 2012. Notably, Piramal’s bio-orthopaedic product, BST-CarGel, received European CE mark approval, and its Decision Resources Group acquired the UK-based Abacus International.
Piramal Enterprises expanded its consumer product portfolio in the skincare segment by acquiring the Caladryl brand in India, known for its anti-pruritic solution for minor skin irritations and itching.
The Company offers a wide range of financial products and solutions, with exposure across both Retail and Wholesale lending. As of March 31, 2023, the business had an AUM of ₹ 63,989 crore. Piramal Enterprises Limited (PEL) operates through three primary business segments:
- Wholesale Lending: PEL’s Wholesale Lending segment provides a wide range of financial solutions to real estate developers, corporate clients, and retail customers. These offerings include structured debt (mezzanine, senior, subordinate debt), construction finance, and unique flexi lease rental discounting.
- Retail Lending: In the Retail Lending segment, PEL offers housing loans to individual customers, covering home loans, balance transfer loans, and top-up loans. This segment is experiencing rapid growth due to increasing eligibility for home loans and PEL’s extensive distribution network.
- Alternatives: This segment focuses on investments in equity, debt, and other assets, as well as providing asset management services. PEL invests through private equity, venture capital, and real estate funds. The company has ties with various investment platforms and JVs, with marquee partners to invest.
Subsidiaries of Piramal Enterprises Limited
- Piramal Capital & Housing Finance Limited (PCHFL): It is a fully-owned subsidiary of Piramal Enterprises Limited and is recognised as a housing finance company under the authority of the National Housing Bank (NHB). PCHFL is actively involved in diverse financial services, catering to both wholesale and retail funding requirements across various industries. Within the real estate domain, this platform offers housing finance and an array of financial solutions that cover the entire spectrum of capital needs. This includes structured debt, construction finance, and flexible lease rental discounting, among others.
- Piramal Fund Management Pvt Ltd (PFMPL): PFMPL serves as the fiduciary division within Piramal Enterprises Ltd’s financial services sector. Previously known as Indiareit, PFMPL was among the pioneering institutions in India to venture into Real Estate Fund Management. At present, PFMPL oversees/advises a total of approximately ₹4,300 crores in funds. This includes management of 5 Domestic Funds, 2 Portfolio Management Strategies, and a Third Party Mandate.
- PHL Fininvest Private Limited: PHL Fininvest is a wholly owned subsidiary of Piramal Enterprises Limited (PEL), a leading diversified financial services company in India. PHL Fininvest is registered with the Reserve Bank of India (RBI) as a non-banking financial company (NBFC) and is engaged in various financial services businesses. PHL Fininvest provides financing to real estate and non-real estate sectors such as healthcare, infrastructure, hospitality, automotive, financial services, transport, renewable energy, entertainment, etc.
- Ajay Piramal, Chairman
Ajay Piramal is an Indian industrialist and philanthropist who serves as the Chairman of the Piramal Group, a global conglomerate with interests in pharmaceuticals, financial services, and real estate. The group operates in over 30 countries, with products distributed in more than 100 markets. Known for its enduring partnerships with esteemed global investors, the Piramal Group is committed to fostering responsible entrepreneurship and creating lasting value for its stakeholders and the broader community. He is deeply dedicated to unlocking India’s socio-economic potential through the Piramal Foundation and is a passionate supporter of social entrepreneurship.
- Piramal Enterprises Limited announced its buyback on August 25, 2023, with an issue size of 1.40 Crores shares, amounting to ₹1,750.00 Crores, at a buyback price of ₹1250 per share.
- On September 1, 2022, Piramal Enterprises Limited issued and allocated 4 equity shares valued at ₹10 each in Piramal Pharma for every 1 equity share worth ₹2 each held by Piramal Enterprises Limited shareholders.
- Piramal Enterprises Limited issued rights shares at a ratio of 11:83, along with a premium of ₹1,298 per share, on December 31, 2019.
- On February 1, 2018, Piramal Enterprises Limited offered rights to its shareholders at a premium of ₹2,378 per share, with a ratio of 1:23.
- The loan book mix for Retail and Wholesale loans is a critical financial indicator. The target mix is mentioned as 2/3rd (Retail) and 1/3rd (Wholesale), and it improved significantly to a 50:50 mix at the end of March 2023. This shift in the loan book mix indicates a change in the composition of the company’s assets and revenue sources.
- The retail financing business saw significant growth across various metrics, including AUM (Assets Under Management), the number of branches, customer franchises, the number of products launched, and disbursements. Specific numbers or growth percentages for these metrics are not provided, but they represent key performance indicators of growth.
- Cross-selling to a large and growing customer franchise resulted in significant growth in Home Loans and other products. While exact numbers are not mentioned, this cross-selling growth is important for assessing the company’s revenue diversification and profitability.
- The company’s efforts to become a more diversified lender and improve risk management. The strengthening of the Enterprise Risk Management system and the use of AI/ML technology in risk management operations are important pointers for assessing the company’s ability to manage and mitigate risks effectively.
- A “proactive approach” to risk management and the use of technology, including proprietary scorecards, is implemented, indicating a commitment to maintaining strong risk management practices. While specific numbers are not given, the effectiveness of risk management is crucial for profitability and sustainability.
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What is the Share price of Piramal Enterprises (PEL)?
Can I buy Piramal Enterprises (PEL) shares?
How do I buy Piramal Enterprises (PEL) from Angel One?
- Direct investment: You can buy Piramal Enterprises (PEL) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to Piramal Enterprises (PEL) shares.
What is the record date for the demerger of Piramal Enterprise (PEL) shares?
The record date for the demerger of Piramal Enterprise (PEL) shares is 1 September 2022.
How many shares of Piramal Pharma will I get for every one share of Piramal Enterprise (PEL)?
Every shareholder of PEL will get 4 shares of Piramal Pharma against one share of PEL.
When will Piramal Pharma shares get listed?
Piramal Pharma shares will be listed on 19 October after it’s demerger from PEL.
What is the total Asset of Piramal Enterprise?
The total asset of Piramal Enterprise is Rs. 99,681 crores.
Who are the promoters of Piramal Enterprise?
Some of the promoters of Piramal Enterprise are The Sri Krishna Trust, PRL Realtors LLP, V3 Designs LLP, Piramal Welfare Trust (previously known as The Piramal Enterprise Executives Trust), AASAN Info Solutions (India) Pvt. Ltd., and The Ajay G. Piramal Foundation.
What are the Subsidiaries that comes under Piramal Enterprise?
Some of the major subsidiaries that come under Piramal Enterprise are Piramal Capital & Housing Finance Limited [previously known as Dewan Housing Finance Corporation Limited] (‘DHFL’), PHL Fininvest Private Limited, Piramal International Mauritius, Piramal Holdings (Suisse) SA, and Piramal Critical Care Italia.