Piramal Enterprises Limited
Piramal Enterprises Limited Fundamental Analysis
Piramal Enterprises Limited (PEL.BO) shows weak financial fundamentals with a PE ratio of 43.81, profit margin of 6.17%, and ROE of 2.15%. The company generates $94.3B in annual revenue with weak year-over-year growth of -1.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PEL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakPEL.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakPEL.BO trades at a premium to fair value.
Growth Score
WeakPEL.BO faces weak or negative growth trends.
Financial Health Score
ModeratePEL.BO shows balanced financial health with some risks.
Profitability Score
WeakPEL.BO struggles to sustain strong margins.
Key Financial Metrics
Is PEL.BO Expensive or Cheap?
P/E Ratio
PEL.BO trades at 43.81 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PEL.BO's PEG of 2.28 indicates potential overvaluation.
Price to Book
The market values Piramal Enterprises Limited at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.92 times EBITDA. This is generally considered low.
How Well Does PEL.BO Make Money?
Net Profit Margin
For every $100 in sales, Piramal Enterprises Limited keeps $6.17 as profit after all expenses.
Operating Margin
Core operations generate 81.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.15 in profit for every $100 of shareholder equity.
ROA
Piramal Enterprises Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Piramal Enterprises Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Piramal Enterprises Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
PEL.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How PEL.BO Stacks Against Its Sector Peers
| Metric | PEL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.81 | 19.09 | Worse (Expensive) |
| ROE | 2.15% | 843.00% | Weak |
| Net Margin | 6.17% | 3730.00% | Weak |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 661.68 | Weak Liquidity |
| ROA | 0.00% | -21651.00% (disorted) | Weak |
PEL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Piramal Enterprises Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-41.37%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-200.86%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
100.20%
Industry Style: Value, Dividend, Cyclical
High Growth