What drove Piramal Pharma's stellar Q1 performance
Strategic focus on innovation in CDMO segment and market expansion in CHG/ICH segment are growth drivers, says a report by Motilal Oswal Financial Services
Piramal Pharma (PIRPHARM) demonstrated an encouraging performance in Q1 FY24, surpassing expectations. The firm experienced a surge in its CDMO (Contract Development and Manufacturing Organisation) business order book and sustained volume growth in Sevoflurane within the complex hospital generics segment (CHG).
Despite registering a net loss of Rs 98.60, there's optimism about PIRPHARM's future profitability, given business revival and debt reduction. Based on these trends and reduced interest costs, FY24/FY25 estimates have been raised by 1 per cent and 3 per cent, respectively, leading to a target price of Rs 125 for the stock. With a strategic focus on innovation in the CDMO segment and market expansion in the CHG/ICH segments, PIRPHARM is poised for an enhanced earnings outlook, according to a report by Motilal Oswal Financial Services.