This Midcap Stock Declared Total Rs 570/Share Dividend In FY22, ICICI Direct Says "Hold"

Sanofi India Ltd, a midcap Pharmaceuticals sector stock, in FY22 declared dividend total amounting Rs 570/share. The stock in February 2023, declared Final & 2nd Special Dividend. Leading brokerage firm ICICI Direct has rated Sanofi India "Hold" for a target price of Rs 6,270/share.

Stock Outlook - CMP, Potential Upside, 52-Week Low/High, Returns

The stock of Sanofi India is likely to surge 7% from its current market price (CMP) considering the given target price of Rs 6,270/share. The stock's CMP is Rs 5,912.65/share, trading 0.83% up from its previous close of Rs 5,864.25/share. Today stock opened at Rs 5,874.90/share.

Its 52 week low is Rs 5,202.10/share and 52 week high is Rs 7,929.45/share, respectively. The stock has gained 9.81% in 1 week, 6.07% in 1 month, and 4.51% in 3 months, respectively. However, it declined 18.31% in 1 year and 18.76% in 3 years, respectively. It gained 16.26% in 5 years.

Final & Special Dividend

According to the exchange filing by the company on 23rd February 2023, "Recommended a final dividend of Rs. 194/- per equity share of the face value of Rs.10/- each and a second special dividend of Rs. 183/- per equity share of the face value of Rs.10/- each for the financial year ended 31st December 2022, subject to approval by the Shareholders at the 67th Annual General Meeting. The Company had earlier paid one-time special interim dividend of Rs. 193/- per equity share on 22nd August 2022."

Furthermore, "The total dividend for the financial year 2022, including the proposed final dividend, one-time special interim dividend and second special dividend, amounts to Rs. 570/- per equity share of the face value of Rs.10/- each. The Dividend, if approved by the Shareholders will be paid on or after 22nd May 2023;"

Q4CY22 Results

According to the ICICI Direct, Sanofi India reported weak numbers in-line with our expectations. Sanofi's Q4CY22 revenues declined by 2.9% QoQ to Rs 672 crore. EBITDA de-grew 8.2% QoQ to Rs 167 crore while EBITDA margins declined 145 bps QoQ to 24.8%. Adjusted Profit for the quarter decreased 14.5% QoQ to Rs 112 crore.

Hold for a target price of Rs 6270/share

ICICI Direct said, "Sanofi's share price has grown at -7.1% CAGR over the past 3 years. Maintain HOLD as we wait for visible growth triggers in power brands portfolio especially in the anti-diabetic and cardiovascular therapies. Valued at Rs 6270 i.e. 23x P/E on CY24E EPS of Rs 272.7."

About the Company

Sanofi offers drugs in therapies like diabetes (insulins & orals), cardiology, pain, allergy and epilepsy. Around 70% of sales stem from top seven brands. Lantus, Allegra & Combiflam are in top 100 pharmaceutical brands in India. Sanofi enjoys strong brand recall in anti-diabetic therapy in India.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.