IIFL Securities's Stock Idea: Buy Sanofi India with Target Rs 10750

IIFL Securities has issued a buy call on Sanofi India, recommending investors to purchase the stock at the current market price of Rs 10164.6. The firm has set a target price of Rs 10750 for the stock, indicating a potential upside of 5.7%. Sanofi India is a leading pharmaceutical company with a strong presence in India. The company's growth prospects are supported by its diversified product portfolio, strong distribution network, and focus on innovation.

About Sanofi India:

Sanofi India, listed on the National Stock Exchange (NSE) of India, is a pharmaceutical company. It manufactures and markets a range of healthcare products, including prescription drugs, vaccines, and consumer healthcare products. The company is headquartered in Mumbai, India, and has operations across the country. Sanofi India is a subsidiary of Sanofi, a global pharmaceutical company headquartered in Paris, France.

52 Week Price Trend:

Sanofi India's current market price (CMP) of Rs 10164.6 reflects a significant increase compared to its 52-week high of Rs 9380 and a substantial premium over its 52-week low of Rs 5329.7. This surge in share price indicates strong investor confidence in the company's performance and growth prospects. Sanofi India, a subsidiary of the global pharmaceutical giant Sanofi, has a strong presence in the Indian healthcare market with a portfolio that includes vaccines, diabetes treatments, and oncology drugs. The company's recent financial results have been positive, contributing to the market's optimism.

Stratzy's MOST Analysis:

SANOFI holds an AA- rating under Stratzy's MOST Framework, indicating a low level of fundamental risk. This rating is supported by SANOFI's strong management team, positive outlook, financial safety, and consistent uptrend. The company's effective leadership, innovative pipeline, and solid financial position contribute to its overall stability and long-term potential. The AA- rating suggests that SANOFI is a reliable investment with a low risk of significant financial losses.

Company's Fundamentals:

Sanofi India (NSE: SANOFI), with a stock PE (price-to-earnings) ratio of 35.26, indicates that investors are willing to pay 35.26 times the company's annual earnings to own its stock. The PB ratio (price-to-book) of 20.51 suggests that the stock is trading significantly above its book value, indicating potential overvaluation. On the other hand, the dividend yield of 2.15% offers investors a modest income stream from the stock, making it potentially attractive for dividend-focused investors. Overall, these metrics provide insights into the company's valuation, profitability, and dividend-paying ability, helping investors make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 08 Jun, 2024

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