Sanofi India - Rating – Buy; Target Price – Rs3,720 - Centrum

- We expect Sanofi India (SIL) to report sales growth of 16.8%YoY but sales decline of 0.7%QoQ to Rs4.94bn.

- SIL is unlikely to have a major impact from NPPP as only one of its brand Clexane (annual revenues Rs837mn) has gone under price control.

- We expect SIL's EBIDTA margin to improve by 550bps YoY to 22.7% from 17.2%.

- SIL is likely to report 48.4%YoY growth in net profit to Rs665mn from Rs448mn.

- The company has entered into an agreement with Suzlon Energy for 2.1MW windmill installation at its Ankleshwar facility. This will help the company generate renewable power for captive consumption.

Source : Equity Bulls

Keywords