Sanofi Consumer Healthcare India Limited

Healthcare — Drug Manufacturers - General · NSE

₹3,558.50−₹14.80 (−0.41%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

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, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Sanofi Consumer Healthcare 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 Consumer Healthcare India Limited operates as a fast-moving consumer healthcare company in India.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees597

Annual revenue₹878 Cr

How does it make money?

Turns over ₹878 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 597 employees supports ₹1.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.47 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.

Compared side by side in Peers ↓

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

ROCE has stayed above 15% in every year available and stands at 77.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 87.9% 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.

Peer median ROE14.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 8.9% and earnings to grow about 10.8% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.9%

Est. earnings growth+10.8%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 2 years revenue moved +61% while net margin moved -10% 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+61%

Margin effect-10%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.27 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

63/ 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

30.8x

2Y Median

60.1x

27 monthly readings · mean 56.6x · range 34.0x–72.5x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 2y median of 60.1x. 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 is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

60.1x median over 27 months · -49%

vs. sector peers

Fair

33.3x median of 4 peers · -8%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.0x

PEG

1.49

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.
High return on capital employed
ROCE of 77.0% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 79.4% to 62.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 101.9% to 77.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.98x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 2 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 77.0% 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.
Priced below its own history
The stock trades 49% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 41.0% to 37.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.98x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 79.4% to 62.5%. 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

1Revenue growth stays above 20% a year✓ 27.0% CAGR
Latest reported year was 6.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹167 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 74%✓ 77.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

₹8,207 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.8x

Fair

Fairly valued against the generic band

P/B Ratio

23.56x

Rich

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

EPS (TTM)

₹115.49

Profitable

Profitable on a per-share basis

ROE

87.9%

Strong

Strong capital efficiency

ROCE

77.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.98x

High

High leverage

Revenue Growth (YoY)

6.7%

Modest

Modest growth

Profit Growth (YoY)

13.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.11%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹392 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.6x

Improving

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

ROA

37.6%

Good

Assets are working hard

Operating Margin

36.5%

Good

Healthy core-business profitability

Net Margin

28.0%

Good

Strong bottom-line conversion

Current Ratio

2.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3783.9 / 4054.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

15.1

Oversold zone

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹544 Cr	₹716 Cr	₹878 Cr	+27.0%
EBITDA	₹223 Cr	₹284 Cr	₹328 Cr	+21.2%
EBITDA Margin	41.0%	39.6%	37.3%	—
PAT (Net Profit)	₹165 Cr	₹181 Cr	₹240 Cr	+20.7%
EPS	₹71.6	₹78.59	₹104.27	+20.7%
ROE	79.4%	66.3%	62.5%	—
ROCE	101.9%	83.4%	77.0%	—
Total Debt	—	₹20 Cr	₹25 Cr	—
Free Cash Flow	-₹4 Cr	₹429 Cr	₹167 Cr	—

🟢 Revenue has grown at 27.0% a year over 2 years.

🟢 EBITDA has grown at 21.2% a year over 2 years.

🔴 EBITDA Margin has fallen from 41.0% to 37.3% over 2 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 20.7% a year over 2 years.

🟢 EPS has grown at 20.7% a year over 2 years.

🔴 ROE has fallen from 79.4% to 62.5% over 2 years (-16.9 pts).

🔴 ROCE has fallen from 101.9% to 77.0% over 2 years (-24.8 pts).

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹167 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹547 Cr

Total Liabilities

₹163 Cr

Cash & Equivalents

₹375 Cr

Operating Cash Flow

₹175 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

18.4%

Insider Holding

72.5%

Corporate Actions

Dividend Rate

₹75

Ex-Dividend Date

19 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹5,855

+64.5% vs CMP

Target Range

₹5,855 – ₹5,855

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

2 positive1 mixed3 general

Sanofi appoints PwC as statutory auditor for five-year term

scanx.trade, 18 Oct

Sanofi Consumer Healthcare India Ltd. 52 Week Low Streak:

Univest, 15 Oct

Is It Worth Considering Sanofi Consumer Healthcare India Limited (NSE:SANOFICONR) For Its Upcoming Dividend?

Simply Wall Street, 15 JunCapital return

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

Sanofi Consumer Healthcare India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Sanofi Consumer Healthcare India Q4 FY25 Result: Share Price Jump 15.10%, ₹75 Dividend Declared

HDFC Sky, 26 FebCapital return

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

Sanofi Consumer up 14% on strong Q4; Sanofi India lags on weak earnings

Business Standard, 26 FebResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

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

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑