Broker snap: Reckitt taps into fast-growing Indian market

13th Dec 2010 10:43

Broker Panmure Gordon has expressed its approval over Reckitt Benckiser's Indian acquisition as the group enters one of the fastest growing healthcare markets in the world.The provider of consumer healthcare and household products announced Monday that it has acquired the privately owned Indian over-the-counter (OTC) and healthcare business Paras Pharmaceuticals for £460m.The list of other bidders - including GlaxoSmithKline, Sanofi, Novartos and J&J - highlights the "growing significance of the Indian healthcare market," says the broker. However, the broker does not foresee any material effects on forecasts as "top line synergies tend to take time to materialise in OTC...We continue to forecast pre-tax profit of £2.2bn equating to earnings per share of 223p in 2011."The broker adds that the shares are currently trading on a price-to-earnings ratio of 15.7, and reiterates it 'buy' recommendation and 3,800p target price.