Piramal Pharma shares jump over 7% to hit 18-month high, gain 32% in 7 weeks

Piramal Pharma shares jumped 7.35% in today's trading session to a new 52-week high of ₹153.90 apiece, and this was also the stock's highest level in 18 months. They finished the last six out of seven weeks in green, gaining 32% as investors cheered to multiple positive developments.

However, despite this recent uptrend, the stock has yet to surpass its IPO price of ₹200, which it hasn't achieved since its listing in October 2022. At the current market price, it remains 24% below the issue price.

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After its listing, the stock experienced selling pressure for seven consecutive months until March 2023, before gaining momentum in the subsequent month. Over the past 14 months, the stock has surged by 127.4%, steadily appreciating from ₹66.85 apiece to its current level of 152.

Piramal Pharma Limited (PPL) is part of the Piramal Group of Companies, which demerged from Piramal Enterprises. The company offers a portfolio of differentiated products and services through its 17 global development and manufacturing facilities and a global distribution network in over 100 countries.

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It operates through three major segments: contract development and manufacturing organisations (CDMO), Complex hospital generics (critical care), and consumer healthcare (OTC).

Recent developments

The company has recently entered the men’s personal grooming segment with the introduction of the BOHEM product range, featuring a hair removal spray, a beard growth oil, and an underarm roll-on. This move reflects Piramal Pharma's strategy to promote more comprehensive self-care practices among men, utilizing scientifically proven ingredients to deliver effective results. 

Building on the success of its flagship brand, Lacto Calamine, which has seen significant growth in the oily skin care sector in recent years, the launch of BOHEM underscores the company's commitment to addressing the male grooming market. BOHEM aims to elevate men's grooming routines by offering solutions for personal hygiene and beard nourishment.

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Piramal Pharma’s India Consumer Products Division’s portfolio comprises over 30 OTC products, with offerings spanning across multiple categories. It aims to be among the top three over the counter (OTC) product companies in India, as per the company's recent exchange filing. 

On April 2nd, the Indian government launched an anti-dumping investigation into the import of vitamin A palmitate from China, the EU, and Switzerland. Piramal, as the sole producer of this product in India, had previously filed a petition with the Directorate General of Foreign Trade (DGTR) in June 2022, requesting such a probe, as per the media reports. 

The sole producer of the product in India, Piramal, says dumped imports hurt domestic industries; alleges price undercutting and suppression by imports.

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Further, global brokerage firm Jefferies in March recommended a 'buy' rating on the stock, anticipating revenue growth for the financial year 2025 (FY25). They set a target price of ₹170 per share. Jefferies projected a year-on-year revenue growth of 12.5% for FY25 for Piramal Pharma but expressed confidence that the company could surpass this forecast.

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