Sanofi India Limited (SANOFI) AI Stock Analysis

• Market Cap: ₹83.98B
• Dividend Yield: 4.73%
• Average Volume (3M): 3.77K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.84
• Revenue Growth: -19.94%
• EPS Growth: -22.49%
• Country: IN
• Employees: 1,225
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 26.80
• Shares Outstanding: 23,030,000
• 10 Day Avg. Volume: 3,778
• 30 Day Avg. Volume: 3,766
• PEG Ratio: 6.96
• Price to Book (P/B): 12.56
• Price to Sales (P/S): 5.12
• P/FCF Ratio: 22.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 170.47
• Revenue Forecast (FY): ₹19.55B

• Rating: 71 Outperform
• Price Target: ₹4,436.00 ▲(7.08% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

The score is driven primarily by strong financial quality (low leverage and solid cash generation), partially offset by softer fundamentals (revenue decline and margin compression). Technicals remain weak with the stock below key moving averages, while valuation is supported by the high dividend yield but tempered by a higher P/E.

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility to fund operations, absorb shocks, and pursue opportunistic investments without heavy external financing. High reported ROE implies efficient capital use, supporting sustained shareholder returns and strategic optionality over 2–6 months.

Strong free cash flow

Robust FCF that closely follows net income indicates high earnings quality and cash conversion. The large 2025 FCF gain strengthens the company’s ability to fund R&D, pay dividends, and manage working capital internally, reducing reliance on external capital.

Diversified product mix with recurring demand

A presence across chronic therapies (diabetes, cardiovascular) and consumer health creates a resilient revenue base driven by repeat prescriptions and branded OTC sales. Diversification across channels (wholesalers, hospitals, pharmacies) reduces single-market reliance and steadies demand.

Negative Factors

Weakened revenue trajectory

Sustained or recurring top-line weakness reduces scale benefits, constrains reinvestment capacity, and heightens sensitivity to pricing and competitive pressures. A choppy growth profile erodes visibility for strategic planning and may force margin-sacrificing measures to defend market share.

Material gross margin compression

A sharp, persistent drop in gross margin materially reduces operating leverage and sustainable profitability. Unless structural cost or pricing remedies are implemented, lower gross margins constrain cash flow, limit reinvestment, and increase vulnerability to adverse pricing or input-cost shocks.

Operating cash flow volatility

Volatile OCF and intermittent weak coverage signal working-capital swings that impair predictability of free cash flow. This reduces planning certainty for capex, dividends, and acquisitions, and can force short-term financing or constraint during stress periods, limiting strategic flexibility.

Sanofi India Limited Business Overview & Revenue Model

Company Description

Sanofi India Limited manufactures and trades in drugs and pharmaceutical products in India, Singaporem and internationally. It provides pharmaceutical products in various therapeutic areas, such as diabetes, cardiology, thrombosis, central nervous system, anti-infective, epilepsy, allergy and vitamins, anti-histamines, and minerals and supplements under the Lantus, Toujeo, Clexane, Amaryl, Cardace, Targocid, Frisium, Combiflam, DePura, Allegra, and Avil brands through independent distributors. The company also exports its products. The company was formerly known as Aventis Pharma Limited and changed its name to Sanofi India Limited in May 2012. The company was incorporated in 1956 and is headquartered in Mumbai, India. Sanofi India Limited is a subsidiary of Hoechst GmbH.

How the Company Makes Money

Sanofi India Limited generates revenue through multiple streams, primarily from the sale of prescription medicines and vaccines. The company markets a diverse portfolio of pharmaceutical products, which accounts for a significant portion of its earnings. Sanofi also engages in consumer healthcare, offering over-the-counter products that contribute to its revenue. Key revenue streams include sales from its diabetes care segment, particularly insulin, as well as other therapeutic areas such as cardiovascular health and oncology. Strategic partnerships with healthcare providers and institutions enhance its market reach and support its revenue generation. Additionally, the company may benefit from collaborations in research and development, enabling it to innovate and expand its product offerings, contributing further to its financial performance.

Sanofi India Limited Financial Statement Overview

Summary

Strong overall fundamentals supported by a conservatively positioned balance sheet (very low leverage and strong ROE) and solid cash generation (FCF closely tracking net income with strong 2025 FCF growth). Main offsets are weakening operating momentum, including 2025 revenue decline and notable gross margin compression versus prior years.

Income Statement

Profitability remains solid, with consistently high operating profitability (EBIT margin ~22–25% across 2020–2025) and healthy net profit margins (mid-to-high teens in 2024–2025). However, the growth profile has weakened: revenue declined in 2025 (-4.1%) and has been choppy since 2022, while gross margin compressed materially from 2021–2023 levels (~55–56% gross margin) to 2025 (~39%), pressuring overall earnings power versus prior years.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity ~1–2% historically and ~2% in 2025), providing strong financial flexibility and resilience. Returns on equity are also very strong (roughly ~44% in 2025), indicating efficient profit generation on the equity base. A key watch-out is the meaningful decline in equity from 2023 to 2025, which can amplify return-on-equity optics and may signal distribution or balance-sheet shifts not explained by the provided data.

Cash Flow

Cash generation is strong: free cash flow is high and closely tracks net income (free cash flow to net income ~0.85–0.96 across the period), indicating good earnings quality. 2025 free cash flow growth was notably strong (+53.7%) and operating cash flow coverage improved materially versus 2023–2024. Still, operating cash flow has been volatile (notably weak coverage in 2023–2024), which suggests periodic working-capital swings or variability in cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.16B	18.37B	20.13B	19.96B	27.70B	29.57B
Gross Profit	9.58B	7.18B	10.19B	10.31B	15.65B	16.33B
EBITDA	4.63B	4.91B	4.85B	4.85B	6.98B	7.54B
Net Income	3.38B	3.27B	4.13B	6.03B	6.21B	9.44B
Balance Sheet
Total Assets	12.39B	12.55B	16.12B	17.15B	20.72B	30.61B
Cash, Cash Equivalents and Short-Term Investments	3.13B	2.75B	3.40B	3.94B	10.05B	15.38B
Total Debt	209.00M	178.00M	193.00M	190.00M	236.00M	246.00M
Total Liabilities	4.57B	5.06B	7.51B	7.00B	7.96B	8.35B
Stockholders Equity	7.82B	7.49B	8.61B	10.15B	12.76B	22.26B
Cash Flow
Free Cash Flow	2.77B	4.25B	4.25B	1.96B	3.77B	5.36B
Operating Cash Flow	2.91B	4.51B	4.62B	2.30B	3.99B	5.59B
Investing Cash Flow	-71.00M	-253.00M	-192.00M	375.00M	6.51B	6.31B
Financing Cash Flow	-2.73B	-4.46B	-3.92B	-8.78B	-15.83B	-8.49B

Sanofi India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4142.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SANOFI, the sentiment is Negative. The current price of 4142.75 is above the 20-day moving average (MA) of 3940.47, above the 50-day MA of 4025.98, and below the 200-day MA of 4849.20, indicating a bearish trend. The MACD of -97.26 indicates Positive momentum. The RSI at 24.26 is Positive, neither overbought nor oversold. The STOCH value of 5.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SANOFI.

Sanofi India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANOFI	71 Outperform	₹83.98B	38.14	―	4.73%	-19.94%	-22.49%
DRREDDY	70 Outperform	₹1.11T	21.88	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.07T	45.14	―	0.87%	6.93%	21.55%
ABBOTINDIA	67 Neutral	₹578.22B	41.01	―	1.68%	10.69%	17.46%
GLAXO	63 Neutral	₹421.00B	35.44	―	2.16%	4.17%	41.51%
GLENMARK	53 Neutral	₹641.30B	35.61	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sanofi India Limited Corporate Events

Sanofi India Faces GST Demand Order of Rs 35.63 Lakh, Plans to Appeal

Sanofi India Limited has disclosed that the Assistant Commissioner in Ahmedabad, Gujarat has issued an order for the financial year 2018-19, raising a total demand of Rs 35.63 lakh, comprising Rs 10.8 lakh in tax, Rs 14.03 lakh in interest and Rs 10.8 lakh in penalty. The demand arises from alleged non-submission of vendor confirmation of tax paid for a vendor whose GST registration was cancelled and a mismatch in Input Tax Credit claimed in GSTR-2A. The company has stated that it will challenge the order by filing an appeal before the higher tax authorities, indicating that the matter is being contested and could be subject to revision depending on the outcome of the appeal process.