Add Sanofi India, target price Rs 8633: ICICI Securities

ICICI Securities has add call on Sanofi India with a target price of Rs 8633. The current market price of Sanofi India Ltd. is Rs 8065.

Sanofi India Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 18666.32 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 736.50 Crore, up 4.99 % from last quarter Total Income of Rs 701.50 Crore and down -13.46 % from last year same quarter Total Income of Rs 851.10 Crore. Company reported net profit after tax of Rs 123.00 Crore in latest quarter.


Investment Rationale
The brokerage marginally revises estimates and maintain ADD with a revised target price of Rs8,633/share based on 33xCY22E EPS (earlier: Rs8,594/share). Key downside risks are: addition of key drugs in NLEM, product concentration, government intervention, and presence of unlisted promoter company.

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 11.5 per cent, DIIs 17.5 per cent and public and others 10.6 per cent.