Stock Idea - Piramal Healthcare Ltd.

>> Saturday, January 10, 2009

CMP – 229.50

Face value – 2

BSE Code – 500302

Dividend – 210 % (24/04/08)

52 Week H/L – 388.70 - 180.00

Company at a glance - Piramal Healthcare Limited, formerly Nicholas Piramal India Ltd., is a pharmaceutical company in India. It is engaged in pharmaceutical business (mainly consisting of manufacturing and sale of own and traded bulk drugs and formulations). During the fiscal year ended March 31, 2008 (fiscal 2008), the Company launched 30 new products (including extensions).

Overview - Piramal Healthcare is among the leading producers of halothane and isoflurane. With its latest acquisition of Minrad Internation (a generic inhalation anaesthetics company), Piramal Healthcare is set to strengthen its global presence in the critical care space, as the deal will give Piramal immediate access into the US market for the country's largest selling inhalation anaethetic sevaflurane.

Piramal has been on the prowl for quite sometime with its acquisition of Rhodia's Inhalation Anesthetics business in 2004 and 'Haemaccel' brand acquisition from PlasmaSelectAG of Germany.

Latest acquisition Minrad International Inc. - Combined Company will create a global company in inhaled anesthetic gas products. Piramal health care has acquired for $40 million, which comes to roughly 1900 crores.

Analysis - With the continued favorable environment for CRAMS business due to its inherent cost advantages, and strong MNC relations, Piramal will continue to be a big beneficiary of increased outsourcing from India. Its domestic business too continues to be strong and steady.

The Company should outperform its peers comfortably and can be considered for accumulation at every decline.

More over the Pharma industry is ever green in India.

Happy Investing!

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Dhawal J. January 15, 2009 at 8:54 AM  

Nifty (2835)

Nifty 30 Minutes chart has formed “BULLISH THREE OUTSIDE UP” pattern which has very high reliability but by looking at world market, long is advisable only above yesterday’s high which is 2853 but sustainability needed at this level. Real Weakness below 2787 till 2722 and here I am stick to same view below 2722 extremely bearish market. Stochastic and RSI is giving negative direction where is MACD has given positive direction.
One more thing to add here is Supply line ends at 2815 below which some minor weakness likely to persist.



Due to uncertainty in global market, I am not providing pre market calls , that will do in market time.

Happy Trading to All