Piramal Life Sciences Management Meet; We continue to reiterate our Buy rating with a target price of Rs127. We expect significant value creation over the next 3-5 years.

CMP: Rs 57                  Target Price: Rs 127

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PLSL has one of the most interesting innovation pipelines in the industry- with 17 molecules in its kitty, out of which, 8 molecules are in human clinical trial stages. In order to understand the progress made by its R&D program and timelines for key molecules, we recently met Dr. Somesh Sharma (CEO-Piramal Life Sciences). While R&D is a long drawn process, we believe that the progress made by the company in few of its R&D programs such as P276, P1446 and P1736 have been quite satisfactory. However, we are disappointed with the delay in P1201 and zero progress in the case of NPB-001-056. We have revised our NPV downwards from Rs270 per share to Rs127 per share because of delay in the launch of P276, P1201 and lack of clarity on molecules like NPB-001-056, P979, etc. We continue to reiterate our Buy rating with a target price of Rs127.  We expect significant value creation over the next 3-5 years.