Sanofi India Limited (SANOFI) AI Stock Analysis

• Market Cap: ₹94.97B
• Dividend Yield: 4.73%
• Average Volume (3M): 3.77K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.87
• Revenue Growth: -19.94%
• EPS Growth: -22.49%
• Country: IN
• Employees: 1,225
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 43.35
• Shares Outstanding: 23,030,000
• 10 Day Avg. Volume: 3,778
• 30 Day Avg. Volume: 3,766
• PEG Ratio: -2.44
• Price to Book (P/B): 16.38
• Price to Sales (P/S): 7.00
• P/FCF Ratio: 33.17
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹5,188.00 ▲(25.23% Upside)

Sanofi India Limited's strong financial performance is the most significant factor, supported by a solid balance sheet and efficient cash flow management. However, technical indicators suggest bearish momentum, which could pose short-term challenges. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Cash Flow Management

Efficient cash generation relative to earnings ensures the company can fund operations, invest in growth, and return capital to shareholders.

Balance Sheet Health

A strong balance sheet with low debt levels provides financial stability and flexibility to navigate economic uncertainties.

Profitability

Stable gross profit margins suggest effective cost management and pricing power, supporting long-term profitability.

Negative Factors

Revenue Growth Decline

Declining revenue growth can impact the company's ability to expand its market share and invest in future opportunities.

Net Profit Margin Decline

A declining net profit margin indicates potential issues in managing costs, which could affect overall profitability and cash flow.

Earnings Volatility

Fluctuating earnings margins can lead to unpredictable financial performance, complicating strategic planning and investment decisions.

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

Sanofi India Limited demonstrates a robust financial position with strong profitability and efficient cash flow management. Despite some volatility in revenue and profit margins, the company's low debt levels and substantial equity offer a cushion against financial instability.

Income Statement

Sanofi India Limited shows a consistent gross profit margin, indicating a stable cost structure. However, the net profit margin has declined from 2023 to 2024, highlighting some challenges in controlling non-operational costs. Revenue growth has been inconsistent, with a notable decrease in 2024 compared to previous years. EBIT and EBITDA margins have also seen fluctuations, reflecting volatility in operational efficiency.

Balance Sheet

The company maintains a very healthy debt-to-equity ratio, demonstrating strong financial leverage management. The equity ratio remains robust, indicating a solid equity base relative to total assets. However, there is a slight decrease in stockholders' equity in 2024, which may warrant monitoring. Overall, the balance sheet reflects financial stability and low risk of over-leverage.

Cash Flow

Sanofi India Limited exhibits strong free cash flow, with an impressive free cash flow to net income ratio, suggesting efficient cash generation relative to earnings. The operating cash flow to net income ratio is solid, indicating good cash earnings quality. While free cash flow growth has been positive, it has shown variability in recent years, requiring attention to sustaining cash flow momentum.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.16B	20.13B	19.96B	27.70B	29.57B	29.02B
Gross Profit	9.58B	10.19B	10.31B	15.65B	16.33B	16.23B
EBITDA	4.63B	4.85B	4.85B	6.98B	7.54B	7.09B
Net Income	3.38B	4.13B	6.03B	6.21B	9.44B	4.78B
Balance Sheet
Total Assets	12.39B	16.12B	17.15B	20.72B	30.61B	29.18B
Cash, Cash Equivalents and Short-Term Investments	3.13B	3.40B	3.94B	10.05B	15.38B	11.97B
Total Debt	209.00M	193.00M	190.00M	236.00M	246.00M	226.00M
Total Liabilities	4.57B	7.51B	7.00B	7.96B	8.35B	8.00B
Stockholders Equity	7.82B	8.61B	10.15B	12.76B	22.26B	21.19B
Cash Flow
Free Cash Flow	2.77B	4.25B	1.96B	3.77B	5.36B	5.70B
Operating Cash Flow	2.91B	4.62B	2.30B	3.99B	5.59B	6.11B
Investing Cash Flow	-71.00M	-192.00M	375.00M	6.51B	6.31B	2.76B
Financing Cash Flow	-2.73B	-3.92B	-8.78B	-15.83B	-8.49B	-8.10B

Sanofi India Limited Technical Analysis

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

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 4130.10, below the 50-day MA of 4348.83, and below the 200-day MA of 5232.83, indicating a bearish trend. The MACD of -49.71 indicates Negative momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.68 is Neutral, 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
DRREDDY	74 Outperform	₹1.01T	17.21	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.18T	21.76	―	0.87%	6.93%	21.55%
SANOFI	67 Neutral	₹94.97B	26.66	―	4.73%	-19.94%	-22.49%
ABBOTINDIA	67 Neutral	₹595.89B	39.49	―	1.68%	10.69%	17.46%
GLAXO	63 Neutral	₹402.25B	42.11	―	2.16%	4.17%	41.51%
GLENMARK	53 Neutral	₹566.35B	56.08	―	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.

Sanofi India Announces Key Leadership Changes

Sanofi India Limited announced a change in its board of directors, appointing Mr. Deepak Arora as an Additional Director and Managing Director for a three-year term starting October 27, 2025. This appointment follows the stepping down of Mr. Rachid Ayari from his role as Interim Managing Director, though he will continue as Whole-time Director and Chief Financial Officer. These changes are expected to impact the company’s leadership dynamics and strategic direction.

Sanofi India Announces Leadership Changes with New Managing Director Appointment

Sanofi India Limited announced the cessation of Mr. Rachid Ayari as the Interim Managing Director effective October 26, 2025. Mr. Ayari will continue as the Whole-time Director and Chief Financial Officer. The Board has appointed Mr. Deepak Arora as an Additional Director and Managing Director for a three-year term starting October 27, 2025. This leadership change is expected to impact the company’s strategic direction and operational management, with Mr. Arora authorized to determine and disclose material events to stock exchanges.

Sanofi India Appoints New Managing Director

Sanofi India Limited has announced the appointment of Mr. Deepak Arora as the new Managing Director, effective October 27, 2025, for a three-year term. This decision follows the recommendation of the Nomination and Remuneration Committee and awaits approval from shareholders and the Central Government. Mr. Arora will also have the authority to disclose material events to stock exchanges. The appointment marks a strategic leadership change as Mr. Rachid Ayari steps down from his interim role but continues as the Chief Financial Officer and Whole-time Director. This transition is expected to strengthen Sanofi India’s management team and enhance its operational effectiveness.

Sanofi India Schedules Investor Call to Discuss Financial Results

Sanofi India Limited has announced an investor and analysts call scheduled for October 29, 2025, to discuss its unaudited financial results for the quarter and nine months ending September 30, 2025. This call will provide stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.