Buy Sanofi India, target price Rs 8500: Centrum Broking

Centrum Broking has buy call on Sanofi India with a target price of Rs 8500. The current market price of Sanofi India Ltd. is Rs 6362.5. Time period given by analyst is one year when Sanofi India Ltd. price can reach defined target.

Sanofi India Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 14647.01 Crore) operating in Pharmaceuticals sector.

Sanofi India Ltd. key Products/Revenue Segments include Pharmaceutical Products, Sale of services, Other Operating Revenue, Export Incentives and Scrap for the year ending 31-Dec-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 715.00 Crore, down -2.24 % from last quarter Total Income of Rs 731.40 Crore and down -11.31 % from last year same quarter Total Income of Rs 806.20 Crore. Company reported net profit after tax of Rs 120.40 Crore in latest quarter.

Investment Rationale
Sanofi aims to accelerate growth in its diabetes portfolio, and is focusing on selective brands. Its established presence in the chronic therapies, likely growth in insulin products and portfolio expansion in cardiology could also add to the growth ahead. Risk factor could be, expansion of NLEM list to add new products like Lantus, combination drugs coming under price control, capping of trade margins, Government policy measures (Brand versus Generics) and currency fluctuation. The stock trades at 24x and 21x EPS of Rs 258 and Rs283 for CY22/23E respectively. The brokerage maintains BUY rating on the stock with a target price of Rs 8,500 (30x EPS of CY23E).

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.71 per cent, DIIs 18.59 per cent.