Piramal Pharma share price zooms on healthy order book; what should investors do?
At around 02:20 PM, Piramal Pharma shares were up around 5 per cent to Rs 96.6 apiece today as compared to the previous days closing of Rs 92.12 per share on the BSE.
Piramal Pharma's share price jumped around 6 per cent to touch the day’s high level of Rs at Rs 97.46 per share on the BSE during Friday’s session. The buying interest in the stock can be attributed to the healthy order book in the current financial year, according to global brokerage Jefferies.
At around 02:20 PM, Piramal Pharma shares were up around 5 per cent to Rs 96.6 apiece today as compared to the previous day’s closing of Rs 92.12 per share on the BSE. The scrip closed over 3 per cent higher at Rs 94.95 a share.
According to Jefferies, the small-cap pharma firm started the current fiscal year on a strong note with a healthy order book in the contract development and manufacturing organization (CDMO) division.
Under CDMO, the pharma company on a contract basis provides comprehensive services from drug development through manufacturing. Services offered under CDMO are pre-formulation, formulation development, stability studies, method development, and clinical trials among others.
The brokerage sees a rise in Full-Time Equivalent (FTE) discovery demand and supply normalisation in complex hospital generics. FTE is a service that allows pharma companies flexibility, freedom, and consistent control of outsourced laboratory needs.
Jefferies maintained a ‘buy’ call on the stock with a target price of Rs 115 a share, which implies a nearly 25 per cent potential upside in the stock from Thursday's closing.
Piramal Pharma's share price history
Piramal Pharma's share price has underperformed the market as it dipped over 21 per cent as against more than a 3 per cent rise in the Nifty50. The stock has almost halved in the last one year against the benchmark index’s rise of 22 per cent.
The counter has a 52-week high-low level of Rs 201.8-63.13 per share.
Piramal Pharma offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and distribution networks in over 100 countries.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.