Piramal Pharma’s shares are expected to be in focus on Wednesday following the company’s announcement regarding a recent inspection by the U.S. Food and Drug Administration (FDA) at its manufacturing facility in Turbhe, Navi Mumbai. According to the company, the FDA conducted a Good Manufacturing Practice (GMP) inspection at the facility from February 11 to February 17, 2025.
At the conclusion of the inspection, the regulatory agency issued a Form 483, highlighting six observations. A Form 483 is typically issued when FDA inspectors identify potential regulatory violations or areas of concern related to manufacturing practices, which may need corrective action. The nature of these observations has not been disclosed by the company.
Investors and industry stakeholders will likely be monitoring the company’s response to the FDA’s observations and any subsequent regulatory developments. The impact of this inspection on Piramal Pharma’s operations and future compliance measures will be closely watched in the coming days.
In a regulatory filing, Piramal Pharma addressed the recent observations made by the U.S. Food and Drug Administration (FDA) following its Good Manufacturing Practice (GMP) inspection at the company’s Turbhe, Navi Mumbai facility. The company clarified that the six observations noted in the FDA’s Form 483 primarily pertain to procedural enhancements rather than issues related to data integrity.
Piramal Pharma emphasized that these observations are largely focused on improving existing processes and operational practices. The company reassured stakeholders that it is taking the necessary steps to address the concerns raised by the FDA. A detailed response is currently being prepared and will be submitted to the regulatory agency within the prescribed timeline.
Furthermore, Piramal Pharma reaffirmed its commitment to upholding high compliance standards and maintaining adherence to regulatory requirements. The company expressed confidence in its ability to effectively resolve the observations and ensure continued compliance with FDA regulations. Industry watchers will likely follow the developments closely as the company works through the regulatory process.
Piramal Pharma announced its financial results for the third quarter of the fiscal year 2025 (Q3FY25), reporting a net profit of ₹4 crore. This marks a decline compared to the ₹10 crore net profit recorded in the corresponding quarter of the previous fiscal year.
Despite the drop in net profit, the company’s revenue from operations showed steady growth, increasing by 13% year-on-year (YoY) to reach ₹2,204 crore in Q3FY25. This revenue growth reflects the company’s ongoing efforts to expand its business and strengthen its market presence.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a year-on-year increase of 6%, reaching ₹350 crore during the quarter. However, EBITDA margins experienced a slight contraction, declining by 100 basis points to 16%. The dip in margins suggests an impact from operational costs or other factors affecting profitability.
The company’s financial performance in this quarter will likely be closely analyzed by investors and industry stakeholders, particularly in the context of revenue growth and margin trends.
According to data from Trendlyne, the average target price set by analysts for Piramal Pharma’s stock stands at ₹306. This target suggests a potential upside of 55% compared to the stock’s current market price.
The stock has been closely tracked by market analysts, and based on assessments from seven analysts, the consensus recommendation is categorized as a ‘Strong Buy.’ This rating reflects analysts’ collective outlook on the company’s future performance, taking into account various financial and operational factors.
While target prices and analyst ratings provide insights into market expectations, investors typically consider multiple factors, including company fundamentals, industry trends, and broader economic conditions, before making investment decisions.
On Tuesday, shares of Piramal Pharma ended the trading session at ₹197 on the Bombay Stock Exchange (BSE), reflecting a decline of 1.1% compared to the previous day’s closing price. The stock’s performance was in contrast to the broader market trend, as the benchmark BSE Sensex registered a marginal decline of 0.04% on the same day.
Over the past three months, Piramal Pharma’s stock has experienced a notable downturn, falling by 22%. However, despite this short-term decline, the stock has demonstrated significant growth over the longer term, surging by 47% over the past 12 months.
At its current market price, the company’s market capitalization stands at ₹26,203 crore, reflecting its valuation based on outstanding shares. The stock’s movement will likely continue to be monitored by investors in relation to market trends and company developments.