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Jul 24, 2025
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Piramal Pharma's share price surged by almost 7% on Tuesday, December 17, 2024. The stock rallied as much as 6.7% after touching an intraday high of ₹268. It was quoted at ₹268.25 at 10:25 AM and is up 6.77% from the previous day's close.
The Piramal Pharma share surge is due to coverage by JM Financial. The firm published a buy recommendation and a price target of ₹340. This target holds approximately 36% upside potential from Piramal Pharma stock’s earlier closing at ₹251 on 16 December.
JM Financial analysts have strong growth prospects for Piramal Pharma, especially in the Indian Contract Research, Development, and Manufacturing Organisation (CRDMO) sector. Analysts expect the CRDMO industry to double by 2028, making India a significant player in the global market for innovator companies.
Piramal's CDMO business, which constitutes 58% of the company's revenue, is considered the core growth engine. The business is unique in its mix of CRO and CDMO services. Analysts expect the segment to grow at a more than 17% CAGR over the next three years. This growth will be led by a solid pipeline of phase III projects and commercialized assets.
The complex hospital generics business is a cash cow for Piramal, contributing 30% of total revenue. Holding a major market share in products like Sevoflurane and Baclofen, the segment is poised for an 11% CAGR between FY24-27. Analysts are optimistic that new product launches will further drive growth.
Piramal Pharma's consumer healthcare segment, contributing 12% of total revenue, is expected to grow at a 13% CAGR over the next few years. Analysts expect the scale-up of power brands and multi-channel marketing initiatives to drive growth, even as high advertising and promotional expenses create an initial drag.
Piramal Pharma's differentiated offerings, global manufacturing footprint, and solid financial prospects position it well for strong growth across multiple business segments. The stock remains favorable for investors, and analysts project a significant upside.
