Buy Sanofi India, target price Rs 6738: ICICI Securities

ICICI Securities has buy call on Sanofi India with a target price of Rs 6738. The current market price of Sanofi India Ltd. is Rs 5596.3.

Sanofi India Ltd., incorporated in the year 1956, is a Mid Cap company (having a market cap of Rs 12894.50 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
The brokerage lowers revenue estimates by ~7% for CY22E-CY23E to factor-in the subdued performance of key brands and addition of Lantus into NLEM. Consequently, it lowers earnings estimates by ~4-5% partially cushioned by higher other income. Recent correction in the stock price (~19% in past 6 months) has made valuations attractive, hence it upgrades to BUY from Add with a revised target price of Rs6,738/share based on 26xCY23E EPS (earlier: Rs7,072/share).

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of 30-Sep-2022, while FIIs owned 8.71 per cent, DIIs 18.28 per cent.