Piramal Pharma soars 9% as co targets 2x revenue, 3x Ebitda margin by FY30

Piramal Pharma aims to achieve over $2 billion in revenue by FY30, which implies 2 times growth in revenue compared with FY24

Piramal Pharma shares were in demand in the morning deals on Wednesday, as the shares gained 8.6 per cent intraday. The stock logged its day's high at Rs 235.35 per share on the BSE. The buying interest in the stock sparked after the pharma company revealed its ambitious  revenue goal by the financial year 2030 (FY30).

At around 1:00 PM, shares of Piramal Pharma were up 4.38 per cent at Rs 226.2 per share on BSE. In comparison, the BSE Sensex traded 0.13 per cent lower at 84,806.11 around the same time.

Through a filing, after market hours on Tuesday, Piramal Pharma informed investors that it aims to achieve over $2 billion in revenue by FY30, which implies 2 times growth in revenue.

Further, it aims to achieve 25 per cent earnings before interest, tax, depreciation, and amortisation (Ebitda) margin, which translates to 3 times growth.

The company aims to establish itself as a significant player in the Indian consumer healthcare segment with market leading brands and extensive distribution reach.

As per a report by InCred Equities, the aspiration has been laid down to double the revenue from FY24 level $1 billion in FY24, implying a compound annual growth rate (CAGR) of 12.5 per cent.

Moreover, the target has been set for the base business without factoring in the tailwinds from the US Biosecure Act. With tailwinds coming in, the growth would be much faster.

Moreover, analysts at InCred believe the profit after tax (PAT) is expected to witness growth in the next 5-6 years, led by reducing finance costs and rationalisation of effective tax rates. The PAT margin is targeted to reach the early teens level (below 1 per cent in FY24) by FY30.  
 

That apart, the management has the intention to continue the organic and inorganic expansion depending upon the financial performance, debt levels, and the cash flow generation.

Furthermore, the management said that its acquisitions will be based on differentiated capabilities which would offer synergies, and meet the profitability, and return ratios criteria.

In the past one year, shares of Piramal Pharma have lost 0.38 per cent against BSE Sensex's rise of 28.6 per cent.