Sanofi India: Strong balance sheet, high cash reserves positives for stock

Products in the price control list and growth of the non-power brand portfolio will be key monitorables

Aided by inventory gains, Sanofi India’s March quarter results (Q1CY22) were better than estimates on the operational front. The Indian arm of the global healthcare innovator reported a 139 basis point expansion in operating profit margins (900 basis points sequentially) to 27.5 per cent. Net sales were down 2.5 per cent year on year (YoY) while they were up 2.8 per cent quarter on quarter (QoQ).

The results are not comparable as the company sold off its nutraceutical segment in July last year to Universal Nutriscience for Rs 587 crore. It also sold a slew of