Rs 50 Interim & Rs 117 Final Dividend: Buy The Pharma Stock For Rs 167 Payout?

A significant player in the pharmaceutical industry is Sanofi India Ltd. One of the companies that Sanofi employs to conduct business in India is Sanofi India Limited. Sanofi is a prominent global healthcare enterprise. Sanofi India Limited's shares can be found listed on the National Stock Exchange (Security Code: Sanofi) and the Bombay Stock Exchange (Security Code: 500674). The firm operates two production facilities: one in Goa and one in Hyderabad. The pharmaceutical company's shares are subject to attention because it announced a sizable interim dividend of Rs. 50 and a final dividend of Rs. 117 for FY24.

Sanofi India Dividend

"The Board has declared an Interim Dividend of Rs 50 per equity share of the face value of Rs 10 each for the Financial Year ended 31st December, 2023, to be paid to those members whose name appear on the Register of Members of the Company on 7th March, 2024 being the Record Date. The said dividend will be paid on or after 20th March, 2024," said the company in a stock exchange filing.

The Board of Directors "Recommended a final dividend of Rs 117/-per equity share of the face value of Rs 10 each for the Financial Year ended 31st December 2023, subject to the approval of Shareholders at the ensuing 68th Annual General Meeting. Payment of dividend will be made on or after 24th May 2024, to those members whose names are on the Company's Register of Members on Friday, 3rd May 2024 and those whose names appear as Beneficial Owners as at the close of the business hours on Friday, 3rd May 2024 as per the details to be furnished by the Depositories, viz. NSDL and CDSL for this purpose," Sanofi India further said in a regulatory filing.

Sanofi India Financials

Sanofi India stated that its net profit increased by 5.19% to Rs 137.7 crore in Q3 FY24 from Rs 130.9 crore in Q3 FY23. In Q3 FY24, revenue from operations climbed 3.27% YoY to Rs 693.9 crore. Profit before tax dropped by 0.84% to Rs 188.8 crore in Q3 FY24 from Rs 190.4 crore in Q3 FY23. In Q3 FY24, the total expense increased by 0.33% to Rs 517.1 crore from Rs 515.4 crore in Q3 FY23. EBITDA jumped 6.69% from Rs. 186.90 crore in the December 2022 quarter to Rs. 199.40 crore in the December 2023 quarter.

Sanofi India Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said SANOFI is currently trading near its all-time high at Rs 9041.7, showcasing a pattern of establishing new higher highs and higher lows, accompanied by robust trading volume. This trend signals strong momentum in the stock. There is potential for SANOFI to attain a target price of Rs 9444 in the near term, making it advisable to consider purchasing on dips, particularly around Rs 8885.

Furthermore, SANOFI is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.

To effectively manage risk, it is recommended to implement a stop-loss (SL) at Rs 8600. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal.

In summary, considering the technical analysis and current market conditions, SANOFI appears to present an attractive buying opportunity for those aiming for a Rs 9444 price target, provided that prudent risk management measures are in place.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.