Buy Sanofi India Ltd For Target Rs. 9,750 - ICICI Direct
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Decent performance with strong margins…
About the stock:
Sanofi offers drugs in therapies like diabetes (insulins & orals), cardiology, thrombosis, anti-infective, CNS, allergy, vitamins, minerals & supplements.
* Lantus, Allegra & Combiflam are in Top 100 pharmaceutical brands in India
* Sanofi is one of the fastest growing companies in India in anti-diabetic therapy
Q2CY21 Results:
Sanofi India reported robust Q2CY21 results.
* Sales were up 11.1% YoY to | 789.1 crore
* EBITDA in Q2CY21 was at | 247.1 crore, up 39% YoY with margins at 31.3%
* Consequent PAT was at | 178.3 crore (up 31.9% YoY)
What should investors do?
Sanofi’s share price has grown by ~1.7x over the past five years (from ~| 4447 in June 2016 to ~| 7672 levels in June 2021).
* We remain positive and retain our BUY rating on the stock Target Price and Valuation: We value Sanofi at | 9750 i.e. 35x P/E on FY23E EPS
Key triggers for future price performance:
* Future launches from its global staple along with brand extensions
* Access to innovative molecules from parent like recently launched antidiabetic drug Toujeo
* Strong balance sheet, good dividend payout track record and comfort on corporate governance
* Consistent performer despite four core brands are under price control
Alternate Stock Idea:
Apart from Sanofi, among MNC coverage we like Abbott.
* We continue to believe in Abbott’s strong growth track in power brands and capability in new launches on a fairly consistent basis
* BUY with a target price of | 19235
To Read Complete Report & Disclaimer Click Here
https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
Above views are of the author and not of the website kindly read disclaimer
