PEL : Is this just a breakout… or start of a multi-bagger move?

PEL

🔍 Technical Analysis (Chart-Based)
📌 Pattern:

• Cup and Handle Breakout clearly visible
  
• Strong breakout above ₹1,197.80 neckline
  
• Brief retracement after rally, likely testing ₹1,272.25 as support
  

📊 Key Levels:

• Immediate Support: ₹1,272.25 (could act as a bullish retest)
  
• Major Support: ₹1,197.80 (neckline of the cup and handle)
  
• Resistance Zone: ₹1,360–1,400 (potential target zone post breakout)
  

🔄 Indicators & Momentum:

• A strong bullish trend confirmed with higher highs and higher lows
  
• Volume during breakout likely high (needs confirmation)
  
• If price respects ₹1,272 and reverses, fresh upmove possible
  

🎯 Technical Summary:
Trend: Bullish
Bias: Buy on dips near support zones
Targets: ₹1,360, then ₹1,420
Stop Loss: Below ₹1,197

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🧮 Fundamental Analysis (PEL - 2025 Outlook)
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🏢 About the Company:
Piramal Enterprises Ltd operates mainly in:

• Financial services (retail and wholesale lending)
  
• Recent demerger of pharma business (PEL is now a pure NBFC)
  

📈 Key Financials (FY24–FY25E):
Metric Value
Market Cap ~₹30,000+ Cr
Revenue (FY24) ₹8,200+ Cr
Net Profit (FY24) ₹900+ Cr
P/E Ratio ~28–30x
Book Value ~₹1,300+
Price-to-Book (P/B) ~1.0x
ROE 6–8%
Debt/Equity ~0.8–1.0x

🔍 Key Positives:

• Strong book value support
  
• Low P/B indicates undervaluation vs peers
  
• Cleaned-up balance sheet after pharma demerger
  
• Focus on retail lending (more stable than wholesale)
  

⚠️ Risks to Watch:

• Still consolidating after business restructuring
  
• NBFC sector sensitive to interest rate cycles & RBI regulation
  
• ROE still on the lower side compared to peers
  

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📌 Investment View (Short + Long-Term)
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✅ Short-Term View (1–3 months):
Technicals favor continuation of uptrend

Momentum can take it to ₹1,360–1,400 if support holds

✅ Long-Term View (6–18 months):
Strong restructuring play post-demerger

Clean balance sheet and pivot to retail NBFC is positive

Long-term target can be ₹1,600–1,800 if execution remains strong

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⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


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Trade Secrets By Pratik
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