StocksMarket.in

Buy Sanofi India; target of Rs 6000: Dolat Capital

April 16
20:25 2018

Dolat Capital’s research report on Sanofi India

CY17 has been an evolving year for the domestic pharma industry including the company, as it witnessed many events like demonitisation and GST implementation. The macro factors along with price erosion led by NPPA expansion impacted 1HCY17 performance significantly taking CY17 revenue growth to 3% YoY and PAT 7% YoY. However, post normalisation of the same, H2 delivered strong earnings performance with revenue growth of 8% and PAT 42%.

Outlook

We remain positive given the management’s focus on improving operating efficiencies and adding niche focus products to the basket. We maintain BUY rating with revised TP of ` 6,000. At CMP of ` 5,078, the stock trades at 29x CY18E EPS of ` 175 and 24x CY19E EPS of ` 207.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Related Articles

Archives