Piramal Enterprises Ltd


(saumya) #1068

JM Financial said, strong promoter-backed NBFCs and HFCs will get disproportionate share of funding and competition from new and small NBFCs will come down massively.
Broker-backed NBFCs like Edelweiss and HFCs with ALM mismatch DHFL, PNB Housing, Repco will see growth slowdown.
It is up to us to separate wheat from chaff

Source


(saumya) #1069

Piramal Enterprises : Board approved the allotment of 3,22,240 equity shares or face value of Rs 2 each at a conversion premium of Rs 2,688 per share pursuant to optional conversion of 8.056 CCDs of face value of Rs 1.07,600 each aggregating to Rs 86,68.25,600.


(rupaniamit) #1070

@paragbharambe - its high churn rate of loan book (repayment + pre-payment) + securitization of high ticket loans. Mr. Jijina’s explanation to a question asked during Q4FY18 con-call:


(saumya) #1071

(Saji John) #1072

(divyansh ) #1073

What does this imply … Is it a way of raising funds or seizing a opportunity considering the inherent value of the business …
Disclosure : invested


#1074

Few days back - NBFCs have poor governance, low promoter holding, toxic assets etc etc, But we are different.

NBFC Stocks crash across the board including PEL

Today - Pls don’t paint everyone with same brush. Some NBFCs are critical for the economy. We should not attack all of them. But we are different.

How many biz leaders attack peers at time of their weakest surroundings? It is good that good sense has prevailed on him. He must learn how other NBFC promoters presented the issues for the industry as a whole.

Disc: No holding


(Marathondreams) #1075

(gneop84) #1076

Based on the interview to ET, he seems worried if there is large scale run on the NBFC which might in turn cause some concerns even for PEL , at the same time is also scouting for opportunities but probably wants to forewarn the government . there is definitely some more that he might be privy too than meets the eye.

Disclosure : Invested : can’t make up mind to invest further :slight_smile:


(Marathondreams) #1077

It seems to me that the market is overlooking pharma side of PEL in this whole NBFC fuelled downfall. Although PEL’s finance business is growing very fast and is now contributing more than 50% of the profits(which may slow down post ILF&S issue) , PEL has a very strong and stable export oriented pharma business. In current rupee depreciation, this business will benefit a lot.


(Parag) #1078

The market sometimes exhibit a tendency to “throw a baby with a bathwater”. The current situation looks a lot similar to that to me in term with persistent selling in PEL.


(Raj A A) #1079

Demerger at Opportune Time


(deeps2884) #1080

A lot of data in this blog is just wrong and even does not provide any insights (you could gain that information with just cursory Google Search). For example data like PS of Rs.280 per share and P/E of 8 (you need to remove the one time income otherwise you would make a wrong investment judgement with just cursory reading).
Current year EPS is ~Rs.100 per share (excluding one time adjustments)… and their is no mention of investment in Shriram Group which is worth ~Rs.500 per share.
Even about demerger umpteen information has been given by Mr.Ajay Piramal that its medium term 2 years back (FY20 types).


(nagireddy1991) #1081

Hi everyone,
I recently saw one of the ads of piramal realty’s Piramal Aranya, I have observed in the end saying this project is funded by hdfc ltd.

My question is why did Piramal realty chose hdfc instead of PEL , can someone thrown any light on this


(Pod85) #1082

Conflict of interest


(HR) #1083

Just a guess: May be they don’t want to finance certain type of home loan customers.


(Deepak Venkatesh) #1084

Hi

Looks like the Piramal is to sell its contract business.

Rgds


(dilip54) #1085

Hi All. Why Piramal is selling their contract pharmaceutical business? What are the plans to use money received ? In fact, I always belived that contract research and manufacturing is a beautiful business and can generate a great profits.


#1086

The list is long

NCE Biz - Failed and exited
Imaging Biz - Sold after making losses
CRAMs- Will get sold
IT biz - Struggling

Real estate biz is flourishing since there were so many near bankrupt companies hungry for capital. RE is a sector in which even the leader Godrej is struggling to generate good returns without taking huge leverage.

Disc: No holding


(phreak) #1087

For a novice like me, it sounds like the great capital allocator is sending good money after bad. I see the Abbott deal which happened back in 2011 still mentioned 6 times in the FY18 AR - specially the valuation bit - 9x Sales and 30x EBITDA (search for 30x in FY18 AR). The pharma unit seems to be generating Rs.4322 Cr in revenues and a 22% EBITDA margin which means a EBITDA of 950 Cr. The article also mentions a $1 billion valuation for this unit which means barely 8x EBITDA and not even 2x Sales (Remember the 30x EBITDA and 9x Sales proudly mentioned 6 times in the AR).

Why sell this unit which is a good cash flow generator now and why at such cheap valuations? Why after having raised 7000 Cr in the last FY? To fund more RE ventures? Something does’t smell right to me.