Piramal Finance shares slide nearly 5% despite strong Q1 results; analysts stay bullish

Shares of Piramal Finance Limited fell sharply on Friday morning, with the stock trading at ₹2,080.90 on the NSE as of 11.53 AM, down ₹105.60 or 4.83 per cent from its previous close of ₹2,186.50. The stock opened at ₹2,200.50, touched an intraday high of ₹2,218.90 before slipping to a low of ₹2,073.90, with sell orders dominating at 78.23 per cent of total quantity traded. Traded volume stood at 8.71 lakh shares with a turnover of ₹184.65 crore by mid-morning.

The sell-off comes a day after the company reported its Q1 FY27 results, which showed a 67 per cent year-on-year jump in consolidated profit after tax to ₹461 crore. The broader market sentiment appears to be driving profit-booking despite the strong numbers, with the stock now trading well below its 52-week high of ₹2,220 hit on July 1, 2026.

Brokerages largely maintained a positive outlook on the stock. Motilal Oswal reiterated a Buy with a target price of ₹2,620, estimating a PAT CAGR of 56 per cent over FY26-FY28 and RoA/RoE of 2.5 per cent/12 per cent by FY28. JM Financial raised its target to ₹2,535 from ₹2,350, citing strong execution and improving operating efficiency, while Nomura kept a Buy with a ₹2,550 target, noting FY27 net profit beat estimates by 14 per cent. However, Jefferies held its rating at Hold with a revised target of ₹2,300, flagging that at 1.6x FY27 book value, upside appeared limited given sub-12 per cent return on equity expected through FY29. HDFC Securities maintained an Add with a conservative target of ₹1,960, pointing to sub-par leverage keeping RoEs below 10 per cent until FY28.

The results themselves showed assets under management rising 25 per cent year-on-year to ₹1,06,940 crore, with retail AUM up 32 per cent to ₹91,249 crore. Net interest income grew 43 per cent year-on-year, and the cost-to-income ratio improved significantly to 52.5 per cent from 65.6 per cent a year ago. Asset quality remained broadly stable with gross NPA at 2.4 per cent, though analysts flagged a marginal sequential uptick in mortgage delinquencies, primarily among salaried IT sector customers in South India, which the company said did not indicate a systemic trend.

The board also approved a fund raise of up to ₹4,000 crore, which Motilal Oswal described as an enabling resolution primarily aimed at supporting organic growth, pending shareholder approval and subject to market conditions.

At current levels, the stock trades at a symbol P/E of 40.71 and carries a market capitalisation of approximately ₹47,187 crore. The index has gained 26.50 per cent year-to-date despite today’s decline.