Sanofi India: Long-term investors advised to consider the stock on dips

Analysts see 19 per cent annual growth in earnings during FY20-22 with significant rise in return ratios post sale of a facility

Multinational pharmaceutical companies, such as Sanofi India, with a domestic focus and strong brand franchise have remained investors’ favourite. Though the lockdown-related disruption, which affected India's pharma market growth, had hurt Street sentiment, Sanofi’s stock was quick to recover. Still, long-term investors could consider it on dips.

Sanofi India’s September quarter (Q3) performance holds testimony and the strong improvement in margins despite a decline in revenues boosts confidence. Sanofi follows the January-December financial year.

Sales at Rs 687 crore declined about 12 per cent year-on-year (YoY), but mainly due to the sale of the export-focused Ankleshwar unit (completed in the June quarter)