Sharekhan's research report on Sanofi India
Sanofi reported weak performance for quarter and results missed estimates. Although numbers are not comparable on a y-o-y basis due to the hiving off of the neutraceuticals business. Revenues and adjusted PAT declined by 4.5% and 26.5% yoy respectively. Divesture of Nutraceuticals business as well as slow moving brands, to remove a drag on the company’s growth and would facilitate enhanced focus on key growth areas – anti diabetes, cardiac.. High-growth visibility from chronics, strong, debt-free balance sheet, sturdy dividends and healthy cash position are the key positives.
We retain Buy recommendation on Sanofi India Limited (Sanofi) with a revised PT of RS 9250.