ICICI Direct has given Buy recommendation for Sanofi India recommended buy rating on the stock with a target price of Rs 9820 in its research repo with a target price of Rs. 9820 in its research report issued on Feb 24, 2021

ICICI Direct’s research report on Sanofi India

CY20 revenues de-grew 5.5% YoY to Rs 2902 crore mainly due to divestiture of few products to Zentiva (Ankaleshwar slump sale) and Covid-19 impact on certain therapies. EBITDA margins improved 291 bps YoY to 24.6% mainly due to lower other expenditure and slightly better gross margins. Subsequently, EBITDA grew 7.2% YoY to Rs 713 crore. Adjusted PAT grew 9.7% YoY to Rs 519 crore. Note: Results are not comparable YoY due to closure of the Zentiva transaction on May 29, 2020.

Outlook

We maintain BUY with a target price of Rs 9820 (unchanged) based on 35x CY22E EPS of Rs 280.6.

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