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from BUSINESS LINE, October 31, 2010 Shareholders can remain invested in the stock of Piramal Healthcare in the near-term. With its key cash cow sold to Abbott Labs, the stock's current valuations largely take support from the cash value on its books.
Post the recently-announced buyback, which will entail a cash outflow of Rs 2,508 crore (if it is successful) the company would be left with cash of about Rs 3,500 crore.
After accounting for the staggered receipts of $1.6 billion over four years from Abbott Laboratories and Rs 300 crore over three years from Super Religare Laboratories, the total present value of cash per share (on post-buyback equity base) works out …