Sanofi India Limited Fundamental Analysis (NSE: SANOFI.NS)
Sanofi India Limited Fundamental Analysis (NSE: SANOFI.NS)
Sanofi India Limited (NSE: SANOFI.NS) shows moderate financial fundamentals with a PE ratio of 23.85, profit margin of 17.94%, and ROE of 40.25%. The company generates $18.1B in annual revenue with weak year-over-year growth of -8.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SANOFI.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSANOFI.NS demonstrates superior asset utilization.
Valuation Score
ExcellentSANOFI.NS trades at attractive valuation levels.
Growth Score
WeakSANOFI.NS faces weak or negative growth trends.
Financial Health Score
ExcellentSANOFI.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentSANOFI.NS achieves industry-leading margins.
Key Financial Metrics
Is SANOFI.NS Expensive or Cheap?
P/E Ratio
SANOFI.NS trades at 23.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SANOFI.NS's PEG of -5.87 indicates potential undervaluation.
Price to Book
The market values Sanofi India Limited at 9.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.03 times EBITDA. This signals the market has high growth expectations.
How Well Does SANOFI.NS Make Money?
Net Profit Margin
For every $100 in sales, Sanofi India Limited keeps $17.94 as profit after all expenses.
Operating Margin
Core operations generate 24.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.25 in profit for every $100 of shareholder equity.
ROA
Sanofi India Limited generates $23.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sanofi India Limited generates limited operating cash flow of $1.46B, signaling weaker underlying cash strength.
Free Cash Flow
Sanofi India Limited produces free cash flow of $1.38B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $60.06 in free cash annually.
FCF Yield
SANOFI.NS converts 1.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.53
vs 25 benchmark
How SANOFI.NS Stacks Against Its Sector Peers
| Metric | SANOFI.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.85 | 31.61 | Better (Cheaper) |
| ROE | 40.25% | 541.00% | Weak |
| Net Margin | 17.94% | 30180.00% | Weak |
| Debt/Equity | 0.02 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 1.69 | 5.70 | Neutral |
| ROA | 23.01% | -8.00% (disorted) | Strong |
SANOFI.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sanofi India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-36.68%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-31.60%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-26.22%
Industry Style: Defensive, Growth, Innovation
Declining