JM Financial has initiated a ‘Buy’ rating on Piramal Pharma, setting a target price of ₹340 per share, implying a 35% upside from the current market price (CMP) of ₹252.
The brokerage builds in a 23%+ EBITDA CAGR, driven by steady cash generation and strong growth in the CDMO business, Piramal Pharma’s largest revenue segment. Traction through newly commercialized molecules and a recovery in the US biotech sector starting H2FY25 are expected to drive performance.
The stock is currently trading at 21x/17x FY26/27 EV/EBITDA, representing a 38% discount to average listed peers. The CDMO segment is projected to achieve a 17% CAGR over the next three years.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.