Sanofi India Q2 Results Review - Margins Remain Resilient Despite NLEM Impact: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Key Points Sanofi India Ltd.’s Q2 CY23 results were a miss on our/consensus estimates on all parameters as National List of Essential Medicines price reduction on Lantus weighed down on revenue and profitability.Revenue grew merely by 1% YoY, despite exports (15% of revenue in CY22) growing 30% YoY due to NLEM price cuts. Ebitda margin improved by 220 bps YoY to 25.2% led by the company’s focus on cost rationalisation.We remain positive about Sanofi India on the back of pure domestic play, strong balance sheet, healthy free cashflow, high return ratios and reasonable valuation. Also, the new Managing Director's focused approach on limited therapies, innovation for India only, cost rationalisation and better utilisation of resources are likely to improve the mix and efficiency. We maintain our 'Buy' rating on Sanofi India with a revised target price of Rs 8,542 valuing it at 25 times June-25E earnings per share..Click on the attachment to read the full report:.Natco Pharma Q1 Review - Higher gRevlimid Supplies, Base Business Traction Drives Earnings: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sanofi India Q2 Results Review - Margins Remain Resilient Despite NLEM Impact: Nirmal Bang

We remain positive about Sanofi India on the back of pure domestic play, strong balance sheet and reasonable valuation.

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