Sharekhan has given Buy recommendation for Sanofi India with a target price of Rs. 9600 in its research report issued on Apr 27, 2021
Sharekhan’s research report on Sanofi India
Sanofi India Limited (Sanofi) reported a mixed performance for the quarter, although numbers are not comparable on a y-o-y basis due to transfer of Ankaleshwar plant. Sanofi expects anti-diabetic segment to be a key growth driver for the company. Also the Top10 brands are expected to stage a strong growth going ahead. Favorable mix and cost efficiencies are expected to result in a 140 bps OPM expansion over CY2020-CY2022E.
Considering high growth visibility from chronics, strong balance sheet with no debt, minimal capex, and healthy cash position, premium valuations are expected to sustain. We retain Buy with a revised PT of Rs. 9,600.