Piramal Enterprises Ltd(Merged)

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Piramal Enterprises Ltd(Merged) trades at ₹1,124, in a confirmed uptrend and 18 weeks into that stage. That is +2.5% against its own 200-day average. It sits at 55% of a 52-week range of ₹872 to ₹1,327. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 18 of stage 2, confirmed. At ₹1,124 it trades +2.5% versus its 200-day average and sits at 55% of its 52-week range (₹872–₹1,327).

Against the market, two honest reads. Cumulative: over the last 9.5 years the stock moved +93% while the NIFTY 500 moved +259% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 93rd percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Piramal Enterprises Ltd(Merged) trades at 49.0× P/E, at the pricey end of its own range (93rd percentile). Its long-run median P/E is 17.8×, measured across 9.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 49.0× is at the pricey end of its own range (93rd percentile), against a long-run median of 17.8× measured over 9.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The price move, decomposed: over 3y, of the +5.6%/yr price move, ~−36.6%/yr came from earnings growth and ~+42.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Piramal Enterprises Ltd(Merged) reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 9 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

45.2/100 — rank 18 of 20 in Diversified · 41% evidence confidence · provisional, ranked below fully-evidenced peers

Piramal Enterprises Ltd(Merged) scores 45.2 out of 100 against the 20 companies it is compared with in Diversified, ranking 18. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 19 + 9.8 + 9.4 + 7 = 45.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Piramal Enterprises Ltd(Merged) reported ₹2,643 Cr of revenue in the Jun 25 quarter, +18.7% year on year. That is the 4th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.3% a year. The last full year, FY25, came in at ₹10,375 Cr. The last four reported quarters add to ₹10,610 Cr.

Piramal Enterprises Ltd(Merged) reported ₹2,643 Cr of revenue in the Jun 25 quarter, +18.7% year on year. That is the 4th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.3% a year. The last full year, FY25, came in at ₹10,375 Cr. The last four reported quarters add to ₹10,610 Cr.

FY25 revenue came in at ₹10,375 Cr (+2.6% on the year), capping 10 years at 7.3% compound. The latest quarter (Jun 25) printed ₹2,643 Cr, +18.7% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +13.1% growth against the decade's 7.3% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.2% over the last 4 quarters against +4.5%/yr over the last 8 — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: the margin picture.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

A clean operating margin is not in our numbers for Piramal Enterprises Ltd(Merged) — its accounts do not report the operating-profit line this section reads, which is common for lenders and holding companies. The sections above and below carry the readings this company's filings do support.

A clean operating margin is not in our numbers for Piramal Enterprises Ltd(Merged) — its accounts do not report the operating-profit line this section reads, which is common for lenders and holding companies. The sections above and below carry the readings this company's filings do support.

This company's accounts do not report the operating-profit line this section reads — common for lenders and holding companies classified outside the financial bucket. The revenue and net-profit sections are the cleaner reads for Piramal Enterprises Ltd(Merged).

🚨 Why the margin moved: operating margin went −0.7 pp year on year while gross margin went +0.0 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit +52.5% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Piramal Enterprises Ltd(Merged) earned ₹276 Cr of net profit in the Jun 25 quarter, +52.5% year on year. Full-year FY25 profit was ₹485 Cr. The 10-year compound rate is −16.2%. That is 10.4% of the quarter's revenue. The same quarter a year earlier earned ₹181 Cr. 3 of the last 12 reported quarters were loss-making.

Piramal Enterprises Ltd(Merged) earned ₹276 Cr of net profit in the Jun 25 quarter, +52.5% year on year. Full-year FY25 profit was ₹485 Cr. The 10-year compound rate is −16.2%. That is 10.4% of the quarter's revenue. The same quarter a year earlier earned ₹181 Cr. 3 of the last 12 reported quarters were loss-making.

Jun 25 profit was ₹276 Cr, +52.5% year on year. On the full year, FY25 printed ₹485 Cr (null), and the 10-year compound rate is −16.2%.

Pace comparison, last four quarters: profit +88.9% vs revenue +13.1%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 14% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 14% of Piramal Enterprises Ltd(Merged)'s reported profit arrived as operating cash — a gap worth watching. In FY25 that was ₹−8,091 Cr of operating cash against ₹485 Cr of profit. After ₹116 Cr of capital spending, ₹−8,207 Cr was left as free cash.

FY25: operating cash of ₹−8,091 Cr against reported profit of ₹485 Cr, leaving free cash of ₹−8,207 Cr after ₹116 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 14% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why: conversion is measured cleanly, but the working-capital day-counts behind it sit below what we hold — the move is shown without inventing its driver.

Router verdict: the visible cash user is investment — the next section checks what the spending is buying.

→ So follow the cash to where it goes. Next: ₹−5,844 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Piramal Enterprises Ltd(Merged) does not report the debtor, inventory and payable day-counts a cash cycle is built from, so this section reads the investment side instead. Capital spending ran ₹−5,844 Cr over the last 3 years. Averaged over those years that is −18.8% of FY25 revenue a year.

Working-capital day-counts are not in our numbers for this stock, so this section reads the investment side — where the cash is being put to work.

On the investment side: capital spending of ₹−5,844 Cr over the last 3 fiscal years against ₹1,166 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹43.0 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROE is 2%.

Return on equity Return on equity (ROE) is the profit the business earns on its shareholders’ money. With the full capital-employed split not in our numbers, ROE is the cleanest long ladder we can draw here.

Piramal Enterprises Ltd(Merged) earns a ROE of 2% in FY25. That is up from a trough of −5% in FY14. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 4.7% net margin on 0.11× asset turns.

FY25 ROE is 2%, recovered from a FY14 trough of −5% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): 4.7% net margin × 0.11× asset turns × 3.50× balance-sheet leverage ≈ 1.8% on equity. Margin does its share; leverage is a meaningful part of the equation.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 2.42.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Piramal Enterprises Ltd(Merged) carries ₹65,577 Cr of borrowings against ₹27,096 Cr of equity in FY25, a debt-to-equity of 2.42. Over 5 years borrowings went from ₹42,238 Cr to ₹65,577 Cr. Capital spending ran ₹−5,844 Cr across the last 3 of those years.

FY25: borrowings of ₹65,577 Cr against equity of ₹27,096 Cr — a debt-to-equity of 2.42. Over 5 years borrowings went from ₹42,238 Cr to ₹65,577 Cr while capital spending ran ₹−5,844 Cr in just the last 3 — part of the build-out is riding on borrowed money.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 10.8 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 10.8 points of Piramal Enterprises Ltd(Merged) over 8 quarters, the biggest move on the register. That takes foreign institutions to 15.2% of the company. Domestic institutions moved +3.3 points over the same window, to 15.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −10.8 points over 8 quarters to 15.2%; Domestic institutions: +3.3 points over 8 quarters to 15.2%; Promoters: +2.7 points over 8 quarters to 46.2%.

Why the register moved: rotation — foreign institutions −10.8 points against domestic institutions +3.3 points over 8 quarters, with promoters +2.7 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Piramal Enterprises Ltd(Merged): the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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