Piramal Finance. (PIRAMALFIN)
TurnaroundFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,057.7 |
| Market Cap | ₹46,505.03 Cr |
| P/E Ratio | 27.55 |
| ROCE | 7.73% |
| ROE | 1,233.15% |
| Dividend Yield | 0.53% |
| Profit Growth | 50,575% |
| Debt/Equity | 2.86 |
| Sales Growth | 30.4% |
| Free Cash Flow | ₹-10,673 Cr |
| Promoter Holding | 46.16% |
| 52-Week Range | ₹1,260 — ₹2,327.85 |
| Sector | Finance |
| Book Value | ₹1,245.15 |
Strengths
- Piotroski F-Score of 7/9 suggests improving fundamentals and earnings quality.
- Promoter holding at 46.16% keeps management aligned with minority shareholders.
- Book value of ₹1,141 gives some downside support, with P/B at 1.62.
- Latest quarter net profit of ₹401 Cr on sales of ₹2,918 Cr shows a sharp margin recovery.
Concerns
- Top line is stagnant: sales growth is only 3.30% and 5-year revenue CAGR is 3.21%.
- P/E of 33.95 is expensive for a slow-growing lender, especially after a 937.79% profit spike that may be base-effect driven.
- Negative free cash flow of ₹10,673 Cr raises questions about capital allocation and internal cash generation.
- Reported ROE of 1,233.15% is unsustainable and inconsistent with ROCE of 7.73%, suggesting unusual or one-off factors.
AI Analysis
At ₹1,853.95, Piramal Finance sells at 1.62 times book and roughly 34 times earnings. The Buffett rule is simple: pay a fair price for a wonderful business. Here, I struggle to call it wonderful. Revenue has grown only 3.30%, and the five-year CAGR is just 3.21%. A housing finance company with that top-line growth is not a compounding franchise. The 937.79% profit jump looks like a rebound from a depressed base, not durable earning power — and the reported ROE of 1,233.15% defies the capital-heavy reality of an HFC. With debt/equity of 2.61, a lender cannot sustain that kind of return on equity. ROCE of 7.73% is more sobering. Negative free cash flow of ₹10,673 Cr is another red flag; while a lending business consumes cash to grow its book, this level of cash burn against 3.21% revenue growth suggests capital is not being deployed efficiently. Promoter holding of 46.16% is a genuine positive, and a Piotroski F-Score of 7/9 shows near-term fundamental improvement. But with no dividend yield and a P/E of 33.95, the market is paying for perfection. I would wait for proof that this profit surge is repeatable and that the balance sheet can generate meaningfully higher revenue growth before calling it a wealth creator. In Graham's words, price is what you pay, value is what you get. Right now, value is unclear.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer