Piramal Enterprises Q1 results disappoint Street, shares slide into triple-digits

Diversified financial services company Piramal Enterprises' shares suffered heavy losses on Monday, halting a three-session winning run, after the company reported a worse-than-expected set of quarterly numbers. The Piramal Enterprises stock fell as much as eight per cent to Rs 986 apiece on BSE.

The company's board announced a share buyback worth up to Rs 1,750 crore through tender offer route, at Rs 1,250 apiece — a 14 per cent premium to the market price.

Piramal Enterprises Q1 results

Minutes after the closing bell on Friday, Piramal Enterprises posted a 93.7 per cent fall in net profit to Rs 509 crore for the first quarter of the current financial year. Its net interest income (NII) declined 16.6 per cent on a year-on-year basis to Rs 891 crore for the three-month period, according to a regulatory filing.

The company's gross non-performing assets (NPAs) came in at 2.8 per cent of total loans for the June quarter, as against 3.8 per cent for the previous three months and net NPAs came down to 1.5 per cent from 1.9 per cent sequentially, according to the filing.

At 12:05 pm, Piramal Enterprises shares traded 5.8 per cent lower at Rs 1,011.1 apiece on the BSE, having briefly traded in triple digits in intraday trade.

What brokerages make of Piramal Enterprises

CLSA double-downgraded Piramal Enterprises to 'underperform' with a target price of Rs 1,150 apiece, implying an upside of 7.2 per cent from Friday's closing price.

The brokerage highlighted that adjusted for one-offs, the company's reported operating profit nearly halved due to compression in the net interest margin (NIM).

Jefferies downgraded the stock to 'underperform' with a target of Rs 920 apiece.

Piramal Enterprises shares: Past performance

In 2023 so far, Piramal Enterprises shares have lost more than 20 per cent of their value in contrast to a rise of more than eight per cent in the headline Nifty index.

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