Buy Piramal Healthcare, target of Rs 358: Sharekhan

Sharekhan has maintained its buy rating on Piramal Healthcare with a price target of Rs 358 in its April 02, 2009 research report. “In an effort to reduce costs and restructure its assets in a more efficient manner,.. Piramal Healthcare (Piramal) has decided to shut down its custom manufacturing facility at Huddersfield, UK (a part of Avecia) and consolidate its custom manufacturing operations at its other sites at Ennore (near Chennai), Digwal (near Ahmedabad) and Morpeth, UK. Even though the closure of the UK site would lead to a onetime hit in the FY2009 financials of the company, the move is in the long-term interest of the company, as it would result in the elimination of redundancies, cost savings, efficiency in operations and an overall improvement in profitability.”

“With a presence across the entire contract research and manufacturing services (CRAMS) value chain, strong customer relationships and a favourable operating environment characterised by increased outsourcing, we expect Piramal’s custom manufacturing business to perform robustly in the future. We maintain our Buy recommendation on the stock with a price target of Rs 358, ” says Sharekhan’s research report.

Tags: bse, buy rating, nse, pirmal healthcare, sharekhan, stock calls

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