Add Sanofi India, target price Rs 8107: ICICI Securities

ICICI Securities has add call on Sanofi India with a target price of Rs 8107. The current market price of Sanofi India Ltd. is Rs 7279.35. 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 16767.21 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-2020.


Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 769.20 Crore, down -4.59 % from last quarter Total Income of Rs 806.20 Crore and up 9.65 % from last year same quarter Total Income of Rs 701.50 Crore. Company reported net profit after tax of Rs 529.80 Crore in latest quarter.


Investment Rationale
The brokerage expects revenue/ EBITDA/ PAT CAGR of 6.9%/ 7.3%/ 6.3% over CY21-CY23E with declining export revenue contribution. It cuts earnings estimates by 3-5% for CY22E-FY23E to adjust sales and profitability linked to the divested brands. Rising contribution of domestic revenue would help lift margins gradually.

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 other 10.6 per cent.