Piramal’s Stock Rallies for 9 Days with News of Breaching The Rs.50,000 crore AUM Milestone

Primal Enterprises outperforms the sector by 2.63% with a 3.13% increase in its stock price on 18 June 2024. The company’s share price has been performing remarkably with a gain streak for the past 9 days. The leading Non-financial Banking Company in the large-cap industry has generated over 20.29% increase in returns during this period. 

Company’s Stock Performance:

Piramal Enterprises saw a 3.13% increase in its stock price on June 18, 2024. It recorded an intra-day high of Rs.915.90 on Tuesday. The moving averages of the share price of the company are higher than the short-term averages but lower than the long-term average. Even in comparison to Sensex, Piramal is showing better performance. Piramal Enterprises has shown a 1-day performance of 3.02%, while Sensex has only shown a 3.05% performance. In the past month too, Primal Enterprises had outperformed the Sensex with a 9.88% performance compared to Sensex’s 4.40% performance.

Reason:

Piramal Group is a global business conglomerate with diverse interests in pharma, financial services, and real estate. The rise in the company’s share price was followed by the announcement that its subsidiary, Primal Capital & Housing Finance Ltd., crossed ₹50,000 crore milestone in Assets Under Management (AUM) of retail loans. Post-announcement the shares of the company rose by Rs. 915.95 apiece on the BSE and have gained 11% since the last month. Mortgages are a primal part of Piramal Finance’s portfolio, accounting for 68% of the overall retail AUM, with a 38% YoY increase in FY24. Since acquiring Dewan Housing Finance Corporation Limited in 2021, Piramal Finance has enhanced its retail loan offerings, which now span over 13 different products tailored to fulfill diverse customer needs.

Conclusion: With a commitment and mission to provide formal credit access to MSMEs and small salaried individuals, Piramal Enterprises aims to continue its growth trajectory in retail lending by targeting an AUM of Rs. 1.5 Lakh Crore by FY28.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.