ICICI Direct is bullish on Sanofi India has recommended buy rating on the stock with a target price of Rs 8815 in its research report dated July 29, 2020.
ICICI Direct's research report on Sanofi India
Sanofi’s Q2CY20 revenues de-grew 5% YoY to Rs 710 crore mainly due to divesture of few products to Zentiva and Covid-19 impact on some therapies. Adjusting for Zentiva, continuing operations grew ~1% YoY. EBITDA margins improved 384 bps YoY to 24.9% due to lower other expenditure, better gross margins. Subsequently, EBITDA grew 12.3% YoY to Rs 177 crore. Adjusted PAT grew 38.8% YoY to Rs 135 crore. Delta vis-a-vis EBITDA was due to lower depreciation, tax rate and higher other income.
We maintain BUY with a target price of Rs 8815 (35x CY21E EPS of Rs 251.9).
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