Sanofi India Limited

Healthcare — Drug Manufacturers - General · NSE

₹2,940.00−₹17.20 (−0.58%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Sanofi India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sanofi India Limited manufactures and trades in drugs and pharmaceutical products in India, Singapore and internationally.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees1,097

Annual revenue₹1,823 Cr

How does it make money?

Turns over ₹1,823 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 1,097 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin28.0%

Net margin17.9%

Revenue / employee₹1.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 58.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 40.3% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE58.5%

ROE40.3%

Peer median ROE14.5%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 6.5% and earnings to grow about 8.2% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.5%

Est. earnings growth+8.2%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -33% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-33%

Margin effect-21%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.6% a year
✗ Profit has declined at 19.3% a year

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

66/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.9x

4Y Median

25.7x

44 monthly readings · mean 25.9x · range 17.9x–35.5x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 4y median of 25.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 37% below the peer median of 33.3x.

vs. its own history

Fair

25.7x median over 44 months · -18%

vs. sector peers

Cheap

33.3x median of 4 peers · -37%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.9x

P/B

8.20x

EV/EBITDA

12.8x

PEG

1.04

Dividend Yield

4.18%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 25% over 3 years.
High return on capital employed
ROCE of 58.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 48.6% to 43.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 65.1% to 58.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 37% against revenue growth of -33% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.78x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 37% against revenue up -33% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 47% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 58.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 25% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 37% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.78x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 37% against revenue up -33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 48.6% to 43.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 26%✓ 28.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹413 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 55%✓ 58.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 25.7x✓ 20.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹6,771 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.9x

Fair

Fairly valued against the generic band

P/B Ratio

8.20x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹140.59

Profitable

Profitable on a per-share basis

ROE

40.3%

Strong

Strong capital efficiency

ROCE

58.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.78x

High

High leverage

Revenue Growth (YoY)

7.7%

Modest

Modest growth

Profit Growth (YoY)

20.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.18%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹314 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2,940

P/E (Forward)

16.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

21.1%

Good

Assets are working hard

Operating Margin

24.3%

Good

Healthy core-business profitability

Net Margin

17.9%

Good

Strong bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3030.5 / 3134.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.2

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹2,727 Cr	₹1,982 Cr	₹1,989 Cr	₹1,823 Cr	-12.6%
EBITDA	₹779 Cr	₹553 Cr	₹508 Cr	₹510 Cr	-13.2%
EBITDA Margin	28.6%	27.9%	25.6%	28.0%	—
PAT (Net Profit)	₹621 Cr	₹603 Cr	₹414 Cr	₹327 Cr	-19.3%
EPS	₹269.47	₹261.78	₹179.54	₹141.85	-19.3%
ROE	48.6%	59.4%	48.0%	43.6%	—
ROCE	65.1%	49.9%	49.5%	58.5%	—
Total Debt	₹24 Cr	₹19 Cr	₹19 Cr	₹18 Cr	-9.0%
Free Cash Flow	₹377 Cr	₹196 Cr	₹425 Cr	₹413 Cr	+3.1%

🔴 Revenue has shrunk at 12.6% a year over 3 years.

🔴 EBITDA has shrunk at 13.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 28.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 19.3% a year over 3 years.

🔴 EPS has shrunk at 19.3% a year over 3 years.

🔴 ROE has fallen from 48.6% to 43.6% over 3 years (-5.0 pts).

🔴 ROCE has fallen from 65.1% to 58.5% over 3 years (-6.6 pts).

🟢 Total Debt has shrunk at 9.0% a year over 3 years.

🟢 Free Cash Flow has grown at 3.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹1,255 Cr

Total Liabilities

₹506 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹263 Cr

Operating Cash Flow

₹438 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

22.9%

Insider Holding

60.6%

Corporate Actions

Dividend Rate

₹123

Ex-Dividend Date

22 Apr 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹4,339.67

+47.6% vs CMP

Target Range

₹3,520 – ₹5,550

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive2 mixed3 general

Sanofi India (NSEI:SANOFI) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why Is Sanofi India Share Price Falling Key Reasons 2026

Univest, 05 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Compare Sanofi India with

Equitymaster, 15 Oct

Sanofi India stock hits 52-week low amid five-session decline

ad-hoc-news.de, 13 Oct

Sanofi India Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Sanofi India - Bonus issue, stock split, dividend: 9 stocks to turn ex-record date next week, check details

The Economic Times, 18 AprCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong14.5/20

🔴GrowthWeak2.4/20

🟢ProfitabilityStrong10.4/15

🟡ValuationFair8.7/15

🟡RiskModerate5.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 26%28.0%
✓Free cash flow remains positive₹413 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 55%58.5%
✓Valuation vs its own median of 25.7x20.9x today