CITI on Piramal Enterprises - 08.06.2021

CITI on Piramal Enterprises - 08.06.2021 

Buy, TP raised to Rs 2260
DHFL deal will benefit via

1)potential net worth accretion due to low purchase price of loans
2)decline in cost of funds – deal financed with 6.75% coupon bonds vs. Co’s 10.8% cost of funds in FY21
3)improved loan mix