Sharekhan has given Buy recommendation for Sanofi India with a target price of Rs. 9600 in its research report issued on Mar 17, 2021
Sharekhan’s research report on Sanofi India
Sanofi India Limited (Sanofi) had hosted an investor webinar to discuss the business updates and management’s commentary was positive pointing at healthy growth outlook. 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 and outperform the industry growth. Favourable mix and cost efficiencies are expected to result in a 120 bps OPM expansion over CY2020-CY2022E.
Outlook
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.