Piramal Enterprises Tanks More Than 10%, Is It The Right Time To Invest?

Shares of Piramal Enterprise Ltd (PEL) nosedived more than 10 percent on to hit a 52-week low of Rs 1652 apiece in Friday's intra-day trade while on NSE the shares have witnessed a fall of 11.25% to Rs 1651.90. The shares witnessed a steep fall in the prices despite the fact that the enterprise declared a consolidated net profit of Rs 151 crore in Q4 of FY 2022. Piramal registered a net loss of Rs 510 crore in the previous financial year.

PEL had a tax impact of Rs 218 crore in 2021 FY that remained at Rs 24 crore in the current financial year.

It is worth noting that Piramal's total income on the consolidated basis recorded a 23% surge to Rs 4.401 crore. It recorded Rs 3,566 crore consolidated net income in the previous quarter. The company's PEL net profit surged to Rs 1999 crore with a growth of 41% as against Rs 1414 crore in the previous financial year.

The shares of Piramal recorded a low of Rs 1688 earlier last year on May 27. Piramal Shares have corrected 44% from its 52-week high 3013 that it had touched last year on October 7.

1. Performance of shares

Piramal Shares have hit a 52-week high of Rs 3013 and a 52-week low of Rs 1,645. The shares have hit an upper price band of 2041.45 and a lower price band of Rs 1577.55. When it comes to price performance of Piramal's shares in just one week, the price of shares on May 20 was recorded at Rs 1916 and compared to its today's price of 1652, the shares have lost 13.78 percent. And, on a monthly basis, the shares have lost 23.52% as the price of the shares was recorded at Rs 2160 apiece. From the beginning of this year, the shares of Piramal have lost 38% as the price was recorded at Rs 2685 share apiece.

2. Should you buy shares of Piramal Enterprises?

Leading brokerage firm Motilal Oswal has given a buy call on the shares of Piramal. According to the report of Motilal Oswal, the company is expected to make meaningful inroads into Retail led by mortgages and complemented by small term loans via digital alliance. Product diversification within Retail is going to assist Piramal deliver robust growth and bring down concentration risks. Motilal Oswal believes PEL has the potential of delivering 1.8% RoA and 8 % RoE over medium term.

3. About Piramal Enterprise Ltd.

It is one of India's diversified firms. It has a strong presence in Financial Services and Pharmaceuticals. Its consolidated revenues were approximately USD 1.7 billion in 2020 FY with approximately 34% of revenue generated from abroad. PEL successfully steered dynamic business growth in the three decades of its establishment. PEL has also established a platform with unique financial solutions that serves varied industry verticals.