Hold Sanofi India, target price Rs 8731: ICICI Securities
Sanofi India Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 19158.83 Crore) operating in Pharmaceuticals sector.
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Promoters held 60.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 12.4 per cent, DIIs 16.2 per cent and public and others 11 per cent.
ICICI Securities has given a hold rating to Sanofi India with a target price of Rs 8731. The share price moved down by 0.61 per cent from its previous close of Rs 8384. The stock’s last traded price is Rs 8332.95.
Sanofi India Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 19158.83 Crore) operating in Pharmaceuticals sector.
Financials For the quarter ended 30-09-2020, the company reported a Standalone sales of Rs 686.60 Crore, down 3.36 % from last quarter Sales of Rs 710.50 Crore and down 11.87 % from last year same quarter Sales of Rs 779.10 Crore. Company reported net profit after tax of Rs 132.90 Crore in latest quarter.
Investment Rationale The brokerage reduces revenue and EPS estimates by 3-4% and 0-3% for CY21E-CY22E to factor in lower sales and expenditure. It maintains HOLD rating with a revised target price of Rs8,731/share based on 33xJun’21E EPS (earlier: Rs8,838). Key downside risks are: addition of key drugs in NLEM, product concentration, government intervention, and presence of unlisted promoter company. Key upside risks are: launch of new products and higher margins with tight cost control measures.
Promoter/FII Holdings Promoters held 60.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 12.4 per cent, DIIs 16.2 per cent and public and others 11 per cent.
