Sanofi India Limited (SANOFI) AI Stock Analysis

• Market Cap: ₹80.66B
• Dividend Yield: 4.73%
• Average Volume (3M): 3.77K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.88
• 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: ₹3,870.00 ▼(-6.58% Downside)
• 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 / low leverage

Very low leverage provides durable financial flexibility and resilience. It lowers bankruptcy and refinancing risk, supports sustained investment in product sales and distribution, and enables consistent shareholder returns or opportunistic M&A without stressing cash flows over the next 2–6 months.

Strong free cash flow generation

High, reliable free cash flow and tight FCF-to-income conversion indicate strong earnings quality and internal funding for capex, marketing, or dividends. The large 2025 FCF gain strengthens the company's ability to sustain operations and shareholder distributions through cyclical pressures.

High operating profitability and ROE

Sustained double-digit EBIT margins and very strong ROE reflect competitive positioning, pricing power, and operational efficiency. These durable profitability metrics support internal reinvestment and returns, and indicate the business generates high returns on its equity base over time.

Negative Factors

Revenue decline and choppy growth

A weakening top-line trend reduces scale benefits and can impair long-run R&D, marketing, and channel investments. Continued revenue softness risks market-share loss, constrains margin leverage, and may force cost or portfolio actions that affect durable growth prospects.

Material gross margin compression

A sustained fall in gross margin materially erodes core earnings power and limits the company's ability to fund SG&A and innovation. If structural (pricing pressure, cost inflation or mix shift), this weakens long-term margin sustainability and reduces operating leverage.

Decline in equity may distort ROE and signal balance-sheet shifts

Falling equity can artificially boost ROE and may reflect outsized distributions, buybacks, or other balance-sheet moves. This reduces the capital buffer against shocks and raises questions about sustainability of returns and the quality of reported profitability over the medium term.

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 makes money primarily by selling pharmaceutical and consumer healthcare products in India. Its revenue model is largely product-sales driven: it earns income from the sale of prescription medicines (through healthcare-provider prescriptions fulfilled via wholesalers, distributors, hospitals, and retail pharmacies) and from consumer healthcare/OTC brands sold through pharmacy and general retail channels. Earnings are supported by (1) a portfolio spanning chronic therapies (e.g., diabetes and cardiovascular) that can generate repeat demand, and (2) brand-led sales in consumer health and vitamins/nutrition where applicable. The company may also generate income from other operating sources such as services, licensing/royalties, export sales, or other income; specific contributions of these items are null.

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 3891.83, above the 50-day MA of 4004.95, and below the 200-day MA of 4822.94, indicating a bearish trend. The MACD of -124.06 indicates Positive momentum. The RSI at 19.06 is Positive, neither overbought nor oversold. The STOCH value of 1.13 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	₹80.66B	38.14	―	4.73%	-19.94%	-22.49%
DRREDDY	70 Outperform	₹1.08T	21.88	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.06T	45.14	―	0.87%	6.93%	21.55%
ABBOTINDIA	67 Neutral	₹571.95B	41.01	―	1.68%	10.69%	17.46%
GLAXO	63 Neutral	₹410.56B	35.44	―	2.16%	4.17%	41.51%
GLENMARK	53 Neutral	₹612.38B	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 Flags Transfer of Dormant Shareholdings to IEPF

Sanofi India Limited has notified stock exchanges that it has published newspaper advertisements alerting shareholders whose dividends have remained unclaimed for seven consecutive years or more. In line with Section 124(6) of the Companies Act, 2013 and related IEPF rules, such shareholders’ equity shares are now liable to be transferred to the Investor Education and Protection Fund Authority, underscoring the company’s compliance with regulatory requirements and the need for affected investors to regularise their holdings.

The move ensures alignment with Indian corporate governance and investor protection norms, potentially leading to a clean-up of dormant share accounts on the company’s register. While operational impact on Sanofi India is limited, the action has implications for long-inactive shareholders, who risk losing direct ownership of their shares unless they act to claim pending dividends and prevent transfer to the IEPF mechanism.

Sanofi India Publishes Transcript of Investor Call on 2025 Financial Results

Sanofi India Limited has notified the stock exchanges that it has made available the transcript of its investor and analyst call held on 26 February 2026, covering the financial results for the quarter and year ended 31 December 2025. The disclosure, made in line with SEBI’s listing regulations and posted on the company’s website, underscores Sanofi India’s ongoing commitment to transparency and timely communication with investors and other market participants.

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.