Analyst's Pick: Piramal Healthcare

Piramal Healthcare
cmp: Rs 208.25
target price: Rs 335

Citigroup has maintained its ���buy��� rating on Piramal Healthcare with a price target of Rs 335, as it believes the company is one of the best bets on custom manufacturing and branded formulations businesses in India. ���PHC (Piramal Healthcare) plans to reconfigure its pharma solutions (CMG) facilities in order to improve efficiencies & profitability,��� the bank said in a report. ���We view PHC���s move to shut down the Huddersfield site as a positive, as it improves the profitability and return on investment (RoI) of the overall business. The expected 600-800 basis points improvement in EBIDTA margins would make up for the temporary loss of revenue & one-time shutdown cost,��� it noted.