Emkay Global Financial Services have suggested a hold rating on Piramal Healthcare with an aim of achieving Rs 531 in its 22nd October, 2010 research report.

In the report, it is mentioned that the gross revenue of Piramal Healthcare for the quarterly period de-grew by 25% to Rs 7.5 billion. The management says that this is because the concentration of focus was on completing the transaction with Abbott and Super Religare Labs rather than on the business areas.

This has resulted in the subdued results of the quarter. The main reasons for the overall de-growth in revenues have been attributed to the domestic formulation business de-growing by 22% to Rs 4.1 billion, the CRAMS business de-growing by 28% to Rs 2.1 billion, the Critical Care business de-growing by 28% to Rs 640 million, and Diagnostics business de-growing 39% to Rs 334 million.

The management hinted that they will prune down their guidance in the future quarters. Previously, the management had guided and raked in a 10-15% growth in the business of CRAMS. It is believed that the performance of the residual business can be improvised on by gradually up ticking the CRAMS business along with bettering the global critical care business.