Citigroup Global Markets retains 'buy' on Piramal Healthcare

CMP: Rs 192.25

Target price: Rs 345

Citigroup Global Markets has retained its ���buy��� rating on Piramal Healthcare, citing strong growth prospects and attractive valuations as the key triggers.

���Our meeting with the management reinforced our confidence in the story despite a sluggish near-term outlook on the CRAMS business. We believe that PHC, by virtue of its strong domestic business & presence across multiple parts of the value chain in CRAMS, is better placed than most of its peers to grow in an uncertain business environment,��� a Citigroup note to clients said.

���Revenue visibility and sustainability are high in the CRAMS business: these are long-term exclusive contracts with innovators with no risk of litigation-related delays and competitive pressures ��� these would continue to boost valuations in an environment where outsourcing as a theme is gaining traction,��� the note added.