Neutral Piramal Finance; target of Rs 1250: Motilal Oswal

Motilal Oswal's research report on Piramal Finance

The Piramal.AI day provided a comprehensive overview of PIEL's strategic transformation into what it terms an 'AI-native' organization, where AI is deeply embedded in every facet of the business. The event showcased how a series of foundational choices, such as developing all technology inhouse and adopting a cloud-native architecture, have enabled the company to achieve significant growth, enhance operational productivity, and improve risk management. Management detailed the company's journey from a wholesale-led entity to a retail-first NBFC, highlighting its 4x growth in four years after the DHFL merger, a feat that positions it as one of the fastest-growing NBFCs in Indian history. The sessions included live demonstrations of a suite of proprietary AI tools that are not theoretical pilots but are fully integrated into core business processes, from customer onboarding and underwriting to collections and customer experience.

Outlook

We value the lending business at 0.8x FY27E P/BV. Reiterate our Neutral rating on the stock with a revised TP of INR1,250 (premised on Mar’27E SOTP).

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Piramal Finance - 29 - 09 - 2025 - moti