Citi raises Piramal Enterprises price target to INR950 from INR800, keeps Sell rating

Published 30/07/2025, 17:26
Citi raises Piramal Enterprises price target to INR950 from INR800, keeps Sell rating

Investing.com - Citi has raised its price target on Piramal Enterprises Group (NSE:PIEL) stock to INR950.00 from INR800.00 while maintaining a Sell rating on the shares.

The firm cited Piramal’s earnings of Rs2.76 billion, which exceeded Citi’s estimate of Rs2.0 billion, driven by lower credit costs and Rs900 million in associate income. The company’s ECL model refinement released Rs1 billion in provisioning, compared to a hit of Rs0.45 billion in the previous quarter.

Citi noted risk deterioration in MSME unsecured and used car finance segments, with retail GS3/GS2 rising to 1.8%/2.0% compared to 1.6%/1.9% quarter-over-quarter. Management indicated secured lending remained stable while self-employed borrowers showed slight struggles.

The minimal rundown of Rs6 billion in legacy AUM curtailed earnings drag to a loss of Rs310 million versus Rs3.29 billion in the previous quarter. Growth businesses registered a pretax return on assets of 1.5% compared to 1.8% quarter-over-quarter.

Piramal’s FY26 guidance includes 25% AUM growth led by over 30% retail AUM growth, legacy AUM run-down to Rs30-35 billion, and profit after tax of Rs13-15 billion. Citi revised its target price based on 0.7x book value, rolling over to December 2026 estimates and cutting the risk-free rate to 6.5%.

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