I had invested a few years back in a Piramal managed real estate fund which has over 50% NPAs. And lengthy resolutions (if any). Most money stuck since years. Not to mention extremely late reporting since the last few quarters.
I don’t know if they pushed riskier lending to the managed funds, and kept the better deals on their own books. Their own book has certainly been very resilient so far.
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As per the last concall, by March end the equity will be between 32-33k cr and the wholesale book will be down to 40k cr. The leverage is also now under 2x for the consolidated business.
This coupled with the upcoming pharma stake sale will provide ample liquidity and help mitigate asset liability mismatch. In hindsight, it was a great decision by AP to strengthen the balance sheet by raising equity.
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Care Ratings has reaffirmed the rating of CARE AA with a stable outlook to PEL’s long-term NCDs. It comes at a time when most of the NBFC are struggling to maintain their ratings (and some are going to court to stop ratings downgrades…)
Actual ratings report attached below
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Piramal Enterprises has applied for moratorium - https://www.cnbctv18.com/finance/piramal-enterprises-gmr-jspl-among-companies-that-applied-for-rbi-moratorium-5766261.htm
Would this be due to operating cash flow shortage as real estate loans from nbfcs have been extended by 1 year?
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Piramal’s NBFC arm was already in trouble since fall of IL&FS. Piramal’s Bond are trading above 14% YTM signalling some serious issues with it. Lets see how things pan out with Piramal but things seems to be getting worse for piramal day by day. Piramal’s share price is also down by 70% almost in past 2 years which also reflects something is wrong bigtime
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Piramal raised 14,000 crores last 6 months from rights issue , sale of analytics . This money takes care of the realty debt payments of realty . This Non Debt fund raising improves the debt equity ratio and health of company. Will improve ratings to AA
Next 2 quarters we may see stake sale of Pharma 3500 cr and Shriram stake 5500 crores. so total 9000 crores non debt funds. This money can be used to pay realty debt .
IMO the mismatches of liquidity are done and puts to rest Piramal past 7 years downfall. @ 900 and upcoming q4 will make it a interesting stock.
Current market cap gives realty finance & financial services value as NIL. Am sure there is lot more value. That is margin of safety @ 900
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There are indications Piramal enters consumer finacing on lines of Bajaj finance using Jio & Reliance Retail network. This can be a future positive.
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Hi. I want to check the NCD & CP redemption data of Piramal as well as some other players that is due in next 3-6 months. Anyone know any portal/report where I can get this data?
Thanks. But not sure how accurate this data is. Try comparing this data with https://www.bloombergquint.com/business/the-non-bank-lenders-bracing-for-a-refinancing-test.
Because putting in a small token amount as booking is called selling.
Yes they want to enter. But a company that is seeking moratorium on its interest payments this doesnt seem will happen soon. Remember the moratorium is being seeked after rights issue, and all kinds of capital raising.
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Thanks for the screenshot. But can you share the source? So that in the future we don’t have to disturb you for getting the same information.
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Its ususal business practice as per rbi offering via banks. All NBFC need to apply and will apply and will take the morataurium if given. It helps their liquidity cycle. Nothing to do with defaults . There will be no change in ratings if they apply. All NBFC are pushing rbi to push banks to support nbfc liquidity. Even a Bajaj Finance will greet any good liquidity measures. If Piramal doesnt get morataurium they have the funds to pay. Looking at rbi directions I see rollovers for all good NBFC .