Piramal Healthcare can test Rs 383: Vishal Jajoo

Piramal Healthcare can test Rs 383, says Vishal Jajoo, Nirmal Bang Sec.

Jajoo told CNBC-TV18, "Though Piramal Healthcare is not a high beta stock but at times it makes a lot of sense to have these kind of stocks in the portfolio wherein the downside is limited and the upside may not be that much phenomenal. But overall the beta of the portfolio is well managed and this well within limits incase of volatility in the markets. In case of downside the risk is much more mitigated if one has certain stocks."
He further added, "The balance sheet is pretty strong and as a result of which we have taken the stock Piramal Healthcare. On top of it there is an announcement that they have acquired stake at 27% lower valuation in Vodafone and as a result of which we expect that this cash that the company has got to the extent of Rs 10,000 crore and the balance portion that they would be getting in tranches would be deployed in a much more better manner, in a ROE accretive manner going forward also."
"If one compares the present market cap to the actual cash that is going to come to the company over a period of time, then there is significant discount. And we feel that in the present times basically there are certain rock steady counters, which one should have in the portfolio, which may not give them sleepless nights considering the volatility and the ups and downs we are seeing in the market. So Piramal Healthcare is a classic candidate in that case and we expect the stock to touch Rs 383 for the day though in the medium to long term we have higher price targets for this stock."