Medium Term Buy Call For Piramal Healthcare

Medium Term Buy Call For Piramal HealthcareStock market analyst Rakesh Bansal of New Age Wealth has maintained 'buy' rating on Piramal Healthcare Ltd stock with medium-term target of Rs 570.

According to analyst, the interested investors can buy the stock with stop loss of Rs 475.

Today, the stock of the company opened at Rs 500 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 599.90 and a low of Rs 318.50 on BSE.

Current EPS & P/E ratio stood at 22.38 and 22.37 respectively.

Piramal Healthcare Ltd has recorded a fall of 5.12% in its consolidated net profit for the three month period ended June 30, 2010.

For April-June quarter, the company's consolidated net profit stood at Rs 80.74 crore as compared to a consolidated net profit of Rs 85.10 crore in the same period of last year.

The company recorded this decline owing to uncertainty bobbing up from the sale of its solutions business to Abbott and the transition value of the agreement.

Company's net sales during the quarter rose 2.54% to stand at Rs 842.41 crore as against Rs 821.54 crore in 2009.

Mr. Ajay Piramal, Chairman, Piramal Healthcare Limited stated, "The performance of the healthcare solutions business for the quarter was impacted due to uncertainty related to the sale of the healthcare solutions business and the transition cost associated with the deal. The performance is now improving and will soon return to its earlier growth trajectory."

During the last month, Piramal inked a definitive deal with Super Religare Labs in order to sell its diagnostics biz for around Rs 600 crore.