Piramal Enterprises shares tank 8% post Q1 results and buyback announcement
Piramal Enterprises tanked 8% to Rs 986 in Monday's trade on BSE after the firm reported its June quarter earnings and Rs 1,750 crore share buyback announcement. For the June quarter, the company posted a profit of Rs 508.78 crore compared with Rs 8,155.47 crore in the year-ago quarter. The company had recorded an exceptional gain of Rs 7,613.96 crore on demerged Pharma undertakings in the year-ago quarter.
Its revenue from operations stood at Rs 2,898.97 crore compared with Rs 2,161.28 crore in the same quarter last year. The board of Piramal Enterprises also approved a share buyback of up to 1,40,00,000 shares of face value Rs 10 each for an aggregate amount not exceeding Rs 1,750 crore. The firm set the buyback price at Rs 1,250, which is at a 16.5% premium over Friday's closing price of Rs 1,072.8 for the stock.
The buyback size represents 5.87% of the total paid-up equity share capital of the company. At 12.43 pm, the scrip was trading 5.7% lower at Rs 1,012 on BSE. On a year-to-date basis, the stock has surged over 20%.
Post Q1 results, brokerage firm Emkay retained its Buy rating on Piramal Enterprises with a target price of Rs 1,230. «To reflect the Q1 developments, especially goodwill impairment and wholesale assets transition to SR, we change our FY24-26 estimates. Hence, we cut earnings for FY24- 25E.
Overall, PIEL seems to be progressing well on its medium-term plan of delivering 3% RoA, and should be assessed over the medium-term outlook, and beyond the near term,» Emkay said. Meanwhile, brokerage firm Motilal Oswal reiterated its Buy rating on the stock with a target price of Rs 1,260, which indicates an upside potential of 24.5% from the current market price. «Over the next two years, we expect the company
. Read more on economictimes.indiatimes.com
