This Pharma stock is a ‘consensus buy’ among all analysts who have coverage on it – CNBC TV18

Shares of Piramal Pharma Ltd. have the potential to surge another 35% from current levels, brokerage firm JM Financial said in a note on Tuesday, December 17.

The brokerage initiated coverage on the pharma company with a “buy” recommendation and a price target of ₹340 per share.

JM Financial expects Piramal Pharma’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a Compounded Annual Growth Rate (CAGR) of over 23% and that will result in steady generation of cash for the company.

Piramal Pharma shares are currently trading at 21 times financial year 2026 Enterprise Value-to-EBITDA and 17 times for financial year 2027, which is a discount of 38% to its other listed peers.

The company’s contract manufacturing (CDMO) business is the key to its outperformance going forward as it is the largest revenue segment.

A potential recovery in the US biotech sector in the second half of financial year 2025 and traction gained through newly commercialised molecules, will help Piramal Pharma achieve a 17% CAGR over the next three years for its CDMO business, JM Financial’s note said.

All ten analysts who have coverage on Piramal Pharma have a “buy” recommendation on the stock.

JM Financial’s price target of ₹340 is also the highest on the street for Piramal Pharma, followed by Motilal Oswal’s ₹310 per share.

Shares of Piramal Pharma ended 1.1% higher on Monday at ₹252. The stock has risen 81% so far in 2024.