Piramal Pharma Ltd

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 Pharma Ltd trades at ₹196, building a base and 5 weeks into that stage. That is +12.7% against its own 200-day average. It sits at 82% of a 52-week range of ₹138 to ₹208. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is building a base — week 5 of stage 1, confirmed. At ₹196 it trades +12.7% versus its 200-day average and sits at 82% of its 52-week range (₹138–₹208).

Against the market, two honest reads. Cumulative: over the last 3.8 years the stock moved +17% while the NIFTY 500 moved +55% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — 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.

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 Pharma Ltd trades at 307.1× P/E, near the bottom of its own range — cheaper only 24% of the time. Its long-run median P/E is 553.3×, measured across 1.5 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 307.1× is near the bottom of its own range — cheaper only 24% of the time, against a long-run median of 553.3× measured over 1.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −455.1% against a +2.6% price move — the price outran earnings, pushing the multiple UP its own range.

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

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 Pharma Ltd 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 12 quarters across 2 curves, on partial evidence.

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

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

4-Factor Sector Score

33.0/100 — rank 19 of 24 in Pharma - API & CRAMS · 65% evidence confidence

Piramal Pharma Ltd scores 33.0 out of 100 against the 24 companies it is compared with in Pharma - API & CRAMS, ranking 19. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 13.1 + 1.3 + 10 + 8.6 = 33. 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 Pharma Ltd reported ₹2,270 Cr of revenue in the Jun 26 quarter, +17.4% year on year. Over 5 years it has compounded at 7.0% a year. The last full year, FY26, came in at ₹8,869 Cr. The last four reported quarters add to ₹9,206 Cr.

FY26 revenue came in at ₹8,869 Cr (−3.1% on the year), capping 5 years at 7.0% compound. The latest quarter (Jun 26) printed ₹2,270 Cr, +17.4% year on year.

Pace check: the last four quarters averaged +1.4% growth against the decade's 7.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +0.8% over the last 4 quarters against +4.9%/yr over the last 8 — rolling over.

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.

Piramal Pharma Ltd's operating margin is 9.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 9.0% to 23.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 9.0%, +3.0 pp against the same quarter a year ago. Across 6 fiscal years the operating margin has ranged 9.0%–23.0%.

Why the margin moved: operating margin went +3.1 pp year on year while gross margin went −1.7 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

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

Piramal Pharma Ltd posted a net loss of ₹69.0 Cr in the Jun 26 quarter. The full FY26 year was a loss of ₹326 Cr. That loss is 3.0% of the quarter's revenue. The same quarter a year earlier lost ₹82.0 Cr. 6 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹−69.0 Cr, null year on year. On the full year, FY26 printed ₹−326 Cr (−458.2%).

Pace comparison, last four quarters: profit −1,378.7% vs revenue +1.4%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

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 549% of Piramal Pharma Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,653 Cr of operating cash against ₹−326 Cr of profit. After ₹1,505 Cr of capital spending, ₹148 Cr was left as free cash.

FY26: operating cash of ₹1,653 Cr against reported profit of ₹−326 Cr, leaving free cash of ₹148 Cr after ₹1,505 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 549% of profit.

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

Why conversion sits at 549%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

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 Pharma Ltd's cash conversion cycle runs 155 days in FY26, up from 147 days in FY21. Capital spending ran ₹3,284 Cr over the last 3 years. At FY26 sales of ₹8,869 Cr each day of that cycle holds about ₹24.3 Cr, so roughly ₹3,766 Cr sits inside the business at any moment.

FY26: debtors at 89 days, inventory at 345 days — roughly 11.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 155 days, looser than FY21's 147.

The full loop: cash goes out to suppliers and production on day 0; stock waits 345 days to sell; customers pay about 89 days after that; and suppliers themselves are paid at 279 days — netting out to the 155-day cycle.

In money terms: at FY26 sales of ₹8,869 Cr, each day of the cycle holds about ₹24.3 Cr — so the 155-day loop keeps roughly ₹3,766 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹3,284 Cr over the last 3 fiscal years against ₹2,388 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹1,100 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Piramal Pharma Ltd earns a ROCE of 3% in FY26. That is up from a trough of 2% in FY23. Return on invested capital clears the cost of that capital by −10.7 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −3.7% net margin on 0.50× asset turns.

FY26 ROCE is 3%, recovered from a FY23 trough of 2% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): −3.7% net margin × 0.50× asset turns × 2.16× balance-sheet leverage ≈ −4.0% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 1.3% − 12.0% = a −10.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Piramal Pharma Ltd carries total debt of ₹5,712 Cr against shareholder equity of ₹8,163 Cr as of Mar 26, a debt-to-equity of 0.70. On the annual view that ratio went from 0.62 in FY22 to 0.70 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹5,712 Cr against shareholder equity of ₹8,163 Cr — a debt-to-equity of 0.70. On the annual view, debt-to-equity went from 0.62 (FY22) to 0.70 (FY26). Read the returns on this page with that leverage in mind.

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 18.9 points of Piramal Pharma Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 12.5% of the company. Domestic institutions moved +1.6 points over the same window, to 14.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −18.9 points over 8 quarters to 12.5%; Domestic institutions: +1.6 points over 8 quarters to 14.6%; Promoters: −0.1 points over 8 quarters to 34.8%.

Why the register moved: rotation — foreign institutions −18.9 points against domestic institutions +1.6 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

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 Pharma Ltd: 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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