More stress ahead from rundown of legacy AUM; downgrade to Neutral

Company

09 May 2024 | 5 Min Read

Piramal Enterprises Bloomberg Equity Shares (m) M.Cap.(INRb)/(USDb) 52-Week Range (INR) 1, 6, 12 Rel. Per (%) 12M Avg Val (INR M) PIEL IN 225 201.1 / 2.4 1140 / 716 5/-24/-2 1737 9 May 2024 4QFY24 Results Update

Downgrade to Neutral due to more stress ahead from rundown of legacy AUM.

4QFY24 credit costs of ~INR33.5b from rundown of wholesale 1.0.

Financials & Valuations show a decline in PPOP and PAT.

PIEL reported 4QFY24 net profit of ~INR1.37b.

The company announced a corporate reorganization through a proposed merger of Piramal Enterprises with its subsidiary Piramal Capital & Housing Finance.