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 uncertainbusiness 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.
Source: ET