Core Viewpoint - Piramal Pharma is positioned for growth with its diverse CDMO capabilities and stable generics segment, despite facing challenges related to biotech funding and regulatory outcomes [1][2][3] Group 1: CDMO Segment - Piramal Pharma's CDMO arm covers the entire spectrum from discovery to commercial supply, focusing on ADCs, HPAPIs, peptides, and sterile injectables [1] - The growth of the CDMO platform is sensitive to biotech funding and approval timelines, as well as regulatory outcomes across multiple jurisdictions [1] - There is a risk of compressed Return on Capital Employed (RoCE) if large capital expenditures in the US and UK do not progress as planned [1] Group 2: Complex Hospital Generics - The complex hospital generics (CHG) segment provides stable margins and predictable cash flow, primarily driven by inhalation anesthetics like Sevoflurane and specialized injectables [2] - This segment is crucial for cash generation and offers resilience against the more variable CDMO cycle [2] Group 3: Consumer Health Segment - The Piramal Consumer Health (PCH) segment leverages strong brand recognition and distribution channels to ensure steady cash flow [2] - There are opportunities for premiumization and expansion into digital and over-the-counter markets within this segment [2] Group 4: Financial Overview - Coverage on Piramal Pharma is initiated with an Add rating and a target price of ₹276, based on a 24.6x EV/EBITDA multiple applied to the projected FY27 EBITDA of ₹1,749 crore [3] - The valuation is adjusted for net debt of ₹4,625 crore [3]