Piramal Enterprises Ltd Share Price – NSE  /  BSE

Finance, Small Cap

The equity benchmarks indices traded with substantial gains in early trade. The Nifty traded above the 24,200 level. Barring the Nifty IT index, all the other sectoral indices on the NSE were traded in green.

At 09:30 IST, the barometer index, the S&P BSE Sensex was up 366.17 points or 0.48% to 79,807.62. The Nifty 50 index gained 118.05 points or 0.49% to 24,241.90.

The Sensex and Nifty clocked an all-time high of 80,039.22 and 24,292.15, respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index added 0.51% and the S&P BSE Small-Cap index rose 0.64%.

The S&P BSE Small-Cap index hit an all-time high at 53,398.75.

The market breadth was strong. On the BSE, 2,228 shares rose and 796 shares fell. A total of 107 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,000.12 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 648.25 crore in the Indian equity market on 2 July 2024, provisional data showed.

Stocks in Spotlight:

Piramal Enterprises rose 1.34% after the company announced that its board has approved the issuance of non-convertible debentures (NCDs) with a green shoe option aggregating to Rs 180 crores on private placement basis.

Yes Bank added 1.22% after the bank’s loans and advances up 14.8% year-on-year at Rs 2.29 lakh crore, deposits up 20.8% year-on-year at Rs 2.64 lakh crore in the Q1 FY25. CASA ratio at 30.7% as against 30.9% QoQ.

Federal Bank rallied 3.83% after the bank reported 20% growth in gross advances to Rs 2,24,139 crore as on 30 June 2024 from Rs 1,86,593 crore as on 30 June 2023.

Numbers to Track:

The yield on India's 10-year benchmark federal shed 0.09% to 7.003 as compared with previous close 7.009.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5275, compared with its close of 83.4800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.32% to Rs 71,780.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 105.71.

The United States 10-year bond yield fell 0.09% to 4.430.

In the commodities market, Brent crude for September 2024 settlement gained 48 cents or 0.56% to $ 86.72 a barrel.

Global Markets:

Most Asian stocks advanced on Wednesday as investors weighed the possibility of interest rate cuts by the Federal Reserve. This follows comments from Jerome Powell, Chair of the Fed, suggesting recent economic data, including a slowdown in China's service sector, points towards disinflation.

China's Caixin Services PMI for June came in at 51.2, down from 54.0 in May. While still indicating expansion, the pace of growth has weakened.

US stocks continued their upward climb on Tuesday. Investors reacted positively to Powell's comments regarding the disinflationary path of the economy, despite data showing a higher-than-expected number of job openings in May (8.14 million). The S&P 500 closed above 5,500 for the first time ever, the Nasdaq Composite achieved a record close, and the Dow Jones Industrial Average also advanced.

While encouraged by cooler inflation, Powell emphasized the need for further evidence before the Fed cuts rates. He noted that recent inflation readings suggest a path towards disinflation, but caution is warranted.

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The base issue size is of Rs 30 crore along with a green shoe option to retain over subscription of up to Rs 150 crore, aggregating to Rs 180 crore.

The debentures are proposed to be listed on the wholesale debt market (WDM) segment of the Bombay Stock Exchange (BSE)/ National Stock Exchange (NSE). NSE is the designated stock exchange.

These NCDs have a coupon rate of 9.5% p.a. paid annually and on redemption date, which is 7 July 2034.

Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.

The NBFC reported consolidated net profit of Rs 137.09 crore in Q4 FY24 as against a net loss of Rs 195.87 crore posted in Q4 FY23. Total income grew by 17.97% to Rs 2,528.16 crore in Q4 FY24 as compared with Rs 2,143.02 crore recorded in corresponding quarter last year.

The scrip ended 1.91% lower at Rs 905.75 on Tuesday, 2 July 2024.

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Piramal Enterprises announced that the Annual General Meeting (AGM) of the company will be held on 8 July 2024.

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Total income grew by 17.97% to Rs 2,528.16 crore in Q4 FY24 as compared with Rs 2,143.02 crore recorded in corresponding quarter last year.

Net interest income (NII) jumped 18% year on year to Rs 755 crore during the quarter.

Pre-provision operating profit (PPOP) was at Rs 293 crore in Q4 FY24, down 37% from Rs 466 crore reported in Q4 FY23.

Total assets under management (AUM) were up 8% YoY, led by the company’s growth business. Retail AUM jumped 49% YoY to Rs 47,927 crore in Q4 FY24.

Disbursements grew 30% YoY to Rs 7,692 crore during the period under review.

The NBFC’s net worth stood at Rs 26,557 crore with capital adequacy ratio at 25.6% on consolidated balance sheet.

In FY24, the company reported a net loss of Rs 1,683.53 crore as against a net profit of Rs 9,968.58 crore recorded in FY23. Total income 12.01% YoY to Rs 10,178.36 in FY24.

Ajay Piramal, chairman of Piramal Enterprises, said, “With the intent of further simplifying our group structure and creating a stronger, more flexible entity that enhances value for all stakeholders, the Board of Directors has approved PEL’s merger with its subsidiary, Piramal Capital & Housing Finance, subject to regulatory approvals.

Over the past two to three years, our company has undergone a significant transformation, reshaping both its business operations and long-term strategy. This transformation gained further momentum in FY24. Specifically, our growth business, which includes Retail Lending and Wholesale 2.0, witnessed substantial expansion during this period.

We made progress across key areas, including AUM growth, business mix optimization and moderation in Op-Ex ratios. In this quarter there was meaningful reduction in our legacy business AUM and this process should largely conclude in the current year. This acceleration has been associated with some credit costs. However, profit in our growth business and other gains in the P&L have supported the profitability in 4Q FY24.

We remain focused on optimizing operating leverage in the growth business and reducing the contribution of the legacy business as quickly as possible. Having navigated through this transformative journey, we are encouraged by the strengthening performance of our new businesses. We are optimistic that that the lingering effects of our legacy challenges should largely fade away this year.”

Meanwhile, the firm’s board recommended a dividend of Rs 10 per equity share for the financial year 2023-24.

Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.

The scrip declined 5.18% to currently trade at Rs 842.95 on the BSE.

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