Piramal Pharma Stock: Piramal Pharma expects healthy growth in its key businesses. But does it cure the debt ailment?

Nandini Piramal, chairperson, Piramal Pharma; image courtesy of Piramal Pharma.


Piramal Pharma’s management is optimistic that with revenue growth and margin expansion, it will be able to trim debt over the next five years. But the capital-intensive nature of its main contract manufacturing business scaling remains a challenge. Will Piramal Pharma be able to keep its investors happy?

In October, the demerged pharmaceuticals business of Piramal Enterprises — Piramal Pharma — got listed on the bourses. Two months on, the stock is down about 35% from its listing price of INR201.80 per share. There are several reasons that explain the stock’s performance. But largely, weak earnings in the first half of the current fiscal year, high debt and concerns over the company’s ability to improve margins and returns, given the capital

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