Piramal Pharma Share Price Surge: Buy on Dips as Analyst Suggests Strong Growth Ahead

Piramal Pharma Share Price Performance

Piramal Pharma share price has experienced a 23% surge during September 2023, resulting in a substantial 68% gain year-to-date (YTD). This positive performance is attributed to robust trading volumes and optimistic growth prospects fuelling investor enthusiasm for the company’s stock. However, analysts noted a minor correction in the Piramal Pharma share price on Thursday due to profit bookings.

Impact of the US Biosecure Act

The recent passage of the draft US Biosecure Act has reinvigorated confidence in Indian Contract Development and Manufacturing Organisation (CDMO) players, such as Piramal Pharma. It’s expected to generate new business opportunities as US pharmaceutical firms aim to relocate their manufacturing operations outside of China. Long-term benefits for contract manufacturers like Piramal Pharma are anticipated following this legislative move.

Q1 Results Highlight Growth

• Piramal Pharma reported a consolidated net loss of ₹88.64 crore for Q1 2024, an improvement from ₹98.58 crore the previous year.
• Consolidated income from operations reached ₹1,951.14 crore, up from ₹1,748.85 crore.
• Nandini Piramal, chairperson, announced steady order inflows in the CDMO division, particularly for on-patent commercial manufacture.

Analyst Insights

Rajesh Bhosale, an analyst at Angel One, views the Piramal Pharma share price as in a strong uptrend with positive momentum. He notes major support at ₹210 and resistance at ₹260, advising traders to adopt a 'buy on dips' approach. Another expert, Ruchit Jain from 5paisa, echoed this sentiment, suggesting that the current trend remains bullish.