Feb 27, 2009

Buzz of stake at substantial premium boosts Piramal Healthcare

26 Feb 2009 | 11:42 Buzz of stake at substantial premium boosts Piramal Healthcare

Meanwhile, the BSE Sensex was down 71.47 points, or 0.80%, to 8829.99.

On BSE, 4.10 lakh shares were traded in the counter. The scrip had an average daily volume of 63655 shares in the past one quarter.

The stock hit a high of Rs 219 and a low of Rs 185.20 so far during the day. The stock had a 52-week high of Rs 388.70 on 6 June 2008 and a 52-week low of Rs 163.75 on 19 February 2009.

The stock had underperformed the market over the past one month till 25 February 2009, sliding 16.89% as compared to the Sensex's rise of 2.63%. It also underperformed the market in the past one quarter, declining 13.38% as compared to the Sensex's 2.38% rise.

The mid-cap drug maker has an equity capital of Rs 41.80 crore. Face value per share is Rs 2.

The current price of Rs 202.90 discounts its Q3 December 2008 annualised EPS of Rs 7.40, by a PE multiple of 27.41.

As per reports, Sanofi-Aventis has completed due diligence and the deal could be closed soon. If the deal goes through, it would be Sanofi's second acquisition of a generic company in less than a year. In September 2008, Sanofi outbid a rival suitor to buy Czech generic drugmaker Zentiva for $2.6 billion. In India, Sanofi-Aventis operates through two entities, Aventis Pharma and Sanofi-Synthelabo (India).

Earlier, Piramal Healthcare had denied media reports which had indicated that UK's GlaxoSmithKline Plc and Sanofi-Aventis were in talks with the company for acquiring the firm terming it as 'totally unfounded'.

Promoters hold 49.57% stake in Piramal Healthcare as at end December 2008.

Piramal Healthcare's net profit fell 47.6% to Rs 38.67 crore on a 21.3% rise in sales to Rs 580.46 crore in Q3 December 2008 over Q3 December 2007.

Piramal Healthcare (formerly Nicholas Piramal) is one of the leading pharmaceutical contract-manufacturing firms in the world. A significant part of Piramal Healthcare's revenue comes from its contract manufacturing services (custom manufacturing), followed by healthcare solutions and diagnostics.