PPLPHARMA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 2.9

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹27,331 Cr Mid-cap pharma

P/E Ratio 317 Extremely overvalued vs industry PE of 34.0

PEG Ratio -8.20 Negative PEG — unsustainable or declining earnings

ROE 1.11% Very poor return on equity

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ROCE 6.45% Weak capital efficiency

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Dividend Yield 0.07% Negligible income generation

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Debt to Equity 0.60 Moderate leverage — manageable but not ideal

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📈 Price Trends & Technicals

Indicator Value Signal

Current Price ₹206 Near 50 DMA, neutral zone

52W High/Low ₹308 / ₹165 33% below high

DMA 50 / 200 ₹206 / ₹209 Trading around both — indecisive

RSI 50.2 Neutral momentum

MACD 0.47 Weak bullish crossover

Volume Above average High participation

🎯 Ideal Entry Price Zone

Given the valuation risks and weak fundamentals, ideal entry would be ₹170–₹185, near the 200 DMA and support zone. This offers a better margin of safety for speculative positioning.

🧭 Holding or Exit Strategy

If you already hold Piramal Pharma Ltd (PPLPHARMA)

Holding Period: Short to medium term (1–2 years) unless ROE/ROCE improve significantly

Exit Strategy

Partial exit near ₹240–₹265 (analyst target zone

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Full exit if PEG remains negative and profitability continues to decline

Re-enter only if ROE >10% and PEG turns positive

✅ Long-Term Investment Verdict

Pros

High volume and potential turnaround interest

Analyst upside target of ₹265–₹336 (25–60% from current levels)

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Improving EBITDA and revenue growth in recent quarters

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Cons

Extremely high P/E and negative PEG

Poor ROE/ROCE and negligible dividend yield

Volatile earnings and weak profitability metrics

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Conclusion: Piramal Pharma Ltd is a high-risk, speculative candidate with potential upside if turnaround sustains. Not suitable for conservative long-term investors. Accumulate only on deep corrections and monitor quarterly results closely.

Would you like a safer alternative in pharma like Sun Pharma or Dr. Reddy’s?

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bing.com

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www.alphaspread.com

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www.marketsmojo.com

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ticker.finology.in

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