Motilal Oswal Securities rates Piramal Healthcare with a 'buy'
Motilal Oswal Securities has rated Piramal Healthcare a 'buy' with a price target of Rs 460.
By ET Bureau |
Piramal Healthcare
CMP: Rs 380.60
TARGET PRICE: Rs 460
Motilal Oswal Securities has rated Piramal Healthcare (PHL) a 'buy' with a price target of Rs 460. "PHL has leveraged its strength in manufacturing and relationships with global majors to position itself as a partner of choice for innovator companies across the product life cycle and value chain. PHL will be a key beneficiary of increased outsourcing from India, given the strong MNC relations which the company enjoys and improving profitability in CRAMS," the Motilal Oswal note to clients said.
"A steady double-digit growth for the domestic formulations business (49% of total revenues for FY09) with good profitability and potential debt reduction should also augur well over the next two years. The stock trades at a P/E multiple of 13 times FY11 (estimated) earnings," the note added.
CMP: Rs 380.60
TARGET PRICE: Rs 460
Motilal Oswal Securities has rated Piramal Healthcare (PHL) a 'buy' with a price target of Rs 460. "PHL has leveraged its strength in manufacturing and relationships with global majors to position itself as a partner of choice for innovator companies across the product life cycle and value chain. PHL will be a key beneficiary of increased outsourcing from India, given the strong MNC relations which the company enjoys and improving profitability in CRAMS," the Motilal Oswal note to clients said.
"A steady double-digit growth for the domestic formulations business (49% of total revenues for FY09) with good profitability and potential debt reduction should also augur well over the next two years. The stock trades at a P/E multiple of 13 times FY11 (estimated) earnings," the note added.
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