Piramal Enterprises stock price target raised to INR1,200 by CLSA

Published 30/07/2025, 17:26
Piramal Enterprises stock price target raised to INR1,200 by CLSA

Investing.com - CLSA has raised its price target on Piramal Enterprises Group (NSE:PIEL) to INR1,200 from INR1,030 while maintaining a Hold rating on the stock.

The adjustment follows Piramal’s first quarter fiscal year 2026 results, which showed a net profit of INR2.8 billion without any Alternative Investment Fund (AIF) gains. The company’s performance was supported by lower credit costs at 1% annualized, though operating profits were affected by elevated operational expenses.

Piramal’s retail Assets Under Management (AUM) demonstrated strong growth at 37%, while the company continues to reduce its legacy book as previously guided. CLSA noted emerging stress in certain segments, including unsecured MSME loans, used vehicle refinancing, and small ticket LAP, with Gross Stage 3 assets increasing 20 basis points quarter-over-quarter in the retail segment.

The investment firm expects Piramal to complete its merger with a subsidiary by September, removing tax considerations from the second quarter onwards. This adjustment has led CLSA to increase its net profit estimates for Piramal by 7-24% over fiscal years 2026-2028.

CLSA forecasts Return on Equity (ROE) of 5-9% for Piramal over fiscal years 2026-2028, and has increased its target multiple from 0.74x to 0.86x due to an improving profitability outlook, resulting in the higher price target.

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