Buy Sanofi India, target price Rs 9820: ICICI Direct

ICICI Direct has purchase name on with a target price of Rs 9820. The present market price of Sanofi India Ltd. is Rs 8165.4.

Sanofi India Ltd., integrated within the yr 1956, is a Mid Cap firm (having a market cap of Rs 18756.37 Crore) working in Pharmaceuticals sector.

For the quarter ended 31-12-2020, the corporate reported a Standalone Total Income of Rs 736.50 Crore, up 4.99 % from final quarter Total Income of Rs 701.50 Crore and down -13.46 % from final yr identical quarter Total Income of Rs 851.10 Crore. Company reported web revenue after tax of Rs 123.00 Crore in newest quarter.

Investment Rationale
Despite Covid-19 and Ankaleshwar divestiture, Sanofi posted a good CY20 operational efficiency amid price rationalisation measures, decreased advertising and marketing & promotional spends. Going forward, the brokerage expects advertising and marketing spends to be decrease than their historic traits on the again of upper adoption of digital advertising and marketing instruments amid Covid-19. Sanofi stays one of many quickest rising corporations in India in anti-diabetic remedy. It launched Toujeo inside simply three years of its launch within the US, which suggests it’s ready to launch core modern merchandise in India banking on progress prospects within the anti-diabetic class. A powerful progress observe in prime manufacturers, measured new launches (together with modern launches) in addition to sturdy steadiness sheet and luxury on company governance entrance are some key attributes of MNC pharma corporations together with Sanofi.

Promoter/FII Holdings
Promoters held 60.4 per cent stake within the firm as of Dec 30, 2020, whereas FIIs held 11.5 per cent, DIIs 17.5 per cent and public and different 10.6 per cent.

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