Piramal Finance Limited

Financial Services — Credit Services · NSE

₹1,941.00−₹33.70 (−1.71%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Piramal Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Piramal Finance Limited, a housing finance company, provides financing solutions to corporate and private customers in India.

IndustryCredit Services

SectorFinancial Services

Employees16,684

Annual revenue₹10,371 Cr

How does it make money?

Turns over ₹10,371 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 16,684 employees supports ₹62.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin23.2%

Net margin14.5%

Revenue / employee₹62.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE1.6%

ROE6.0%

Peer median ROE16.5%

What is the outlook?

10 analysts covering the stock expect revenue to grow about 26.1% and earnings to grow about 47.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+26.1%

Est. earnings growth+47.4%

Analysts10

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +60% while net margin moved -113% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+60%

Margin effect-113%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

50/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.1x

1.1Y Median

80.8x

13 monthly readings · mean 69.1x · range 29.4x–100.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 68% below its 1.1y median of 80.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 54% above the peer median of 17.0x.

vs. its own history

Cheap

80.8x median over 13 months · -68%

vs. sector peers

Expensive

17.0x median of 4 peers · +54%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.1x

P/B

1.53x

EV/EBITDA

50.7x

PEG

—

Dividend Yield

0.57%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -113.8% to 23.2% over 3 years.
Return on equity is rising
ROE has improved from -5007.3% to 5.3%.
Return on capital is rising
ROCE has improved from -2499.0% to 1.6%.
Valuation below its historical average
At 26.1x the stock trades 68% below its own median of 80.8x.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 28680% against revenue growth of 60% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -113.8% to 23.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 68% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 54% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 16.9% CAGR
Latest reported year was 2.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 6.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 80.8x✓ 26.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹45,836 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

26.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹74.27

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

1.6%

Weak

Low return on total capital employed

Debt/Equity

2.87x

High

High leverage

Revenue Growth (YoY)

2.1%

Modest

Modest growth

Profit Growth (YoY)

67.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹16,009 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,941

P/E (Forward)

12.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

24.7%

Good

Healthy core-business profitability

Net Margin

32.2%

Good

Strong bottom-line conversion

Current Ratio

48.57

Comfortable

Healthy short-term liquidity

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2069.0 / 2137.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,499 Cr	₹6,569 Cr	₹8,568 Cr	₹10,371 Cr	+16.9%
EBITDA	-₹7,395 Cr	₹1,489 Cr	₹2,761 Cr	₹2,402 Cr	—
EBITDA Margin	-113.8%	22.7%	32.2%	23.2%	—
PAT (Net Profit)	-₹7,401 Cr	-₹1,975 Cr	₹485 Cr	₹1,504 Cr	—
EPS	₹-328.14	₹-87.57	₹21.52	₹66.03	—
ROE	-5007.3%	-1326.2%	1.8%	5.3%	—
ROCE	-2499.0%	-664.1%	1.0%	1.6%	—
Total Debt	₹408 Cr	₹456 Cr	₹65,577 Cr	₹79,989 Cr	+481.0%
Free Cash Flow	₹5,358 Cr	-₹6,684 Cr	-₹8,393 Cr	-₹16,009 Cr	—

🟢 Revenue has grown at 16.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹7,395 Cr to ₹2,402 Cr.

🟢 EBITDA Margin has risen from -113.8% to 23.2% over 3 years (+137.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹7,401 Cr to ₹1,504 Cr.

🟢 EPS has turned positive, from ₹-328.14 to ₹66.03.

🟢 ROE has risen from -5007.3% to 5.3% over 3 years (+5012.7 pts).

🟢 ROCE has risen from -2499.0% to 1.6% over 3 years (+2500.6 pts).

🔴 Total Debt has grown at 481.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5,358 Cr to -₹16,009 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.11 L Cr

Total Liabilities

₹82,355 Cr

Total Debt

₹79,989 Cr

Cash & Equivalents

₹4,123 Cr

Operating Cash Flow

-₹15,892 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

26.1%

Insider Holding

46.6%

Corporate Actions

Dividend Rate

₹11

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

8 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹2,341.5

+20.6% vs CMP

Target Range

₹1,200 – ₹2,800

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

Piramal Finance Limited (PIRAMALFIN) Share Price NSE

TechGraph, 07 Oct

Piramal Finance shares hit 52-week high on raising ₹2,100 crore via QIP; check details

Upstox, 30 AugFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Buy Piramal Finance; target of Rs 2480: Motilal Oswal

Moneycontrol.com, 12 Oct

Piramal Finance sets Q2FY27 earnings call for Oct 19 at 5 pm IST

scanx.trade, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Piramal Finance (PIRAMALFIN.NS) Slips 3.24% to ₹2,225.7, Drifting Toward Lower End of Range - Channel Projection

siam.in, 21 Sept

PIRAMALFIN Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong10/15

🟡ValuationFair9.5/15

🔴RiskHigh3.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 13% a year16.9% CAGR
✓EBITDA margin holds above 21%23.2%
✗Return on equity stays above 8%6.0%
✓Valuation vs its own median of 80.8x26.1x today