Piramal Enterprises Stock Price Analysis and Quick Research Report. Is Piramal Enterprises an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Piramal Enterprises stock price today is Rs 1148.4. To understand the functions of the Piramal Enterprises better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Piramal Enterprises is Rs 503.73 Cr and the compounded growth of profit in the past 3 years is -19.4600844986139 %. The PAT margin of Piramal Enterprises is 23.5568 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Piramal Enterprises , the EPS grew by 5.8607 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Piramal Enterprises has a poor ROE track record. The ROE of Piramal Enterprises is at 2.3228 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Piramal Enterprises is worth at the current levels at Rs 1148.4. The stock is trading at a current P/E ratio of 44.1661 and the average historical P/E for the last 5 years was 27.9293913562842.

• P/B ratio can be one of the best metrics to value such companies. Currently, Piramal Enterprises is trading at a P/B of 1.1891 . The average historical P/B of Piramal Enterprises for the last 5 years was 1.28971230776881. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Piramal Enterprises is Rs 1148.4. One can use valuation calculators of ticker to know if Piramal Enterprises share price is undervalued or overvalued.