Analyst Initiates Coverage on Piramal Pharma with Add Rating and ₹276 Target

Piramal Pharma's CDMO division showcases a robust platform spanning discovery to commercial supply, specializing in ADCs, HPAPIs, peptides, and sterile injectables. A deep-dive analysis highlights its competitive scope and proximity, though growth remains tethered to biotech funding cycles, regulatory hurdles, and capex utilization risks.

The company's complex hospital generics segment delivers stable margins and predictable cash flow, anchored by inhalation anaesthetics like Sevoflurane. Meanwhile, its consumer health arm leverages strong brand recall, offering growth optionality through digital and OTC expansion.

Initiated with an Add rating, the ₹276 target reflects a 24.6x EV/EBITDA multiple applied to FY27F EBITDA of ₹1,749 crore, adjusted for net debt. The valuation aligns with peer medians, balancing strategic potential against execution risks.