Sanofi India (SANOFI)

FairStock Score: 39/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look for durable economics, honest balance sheet, and sensible price. Sanofi India shows excellent financial quality: ROE 40.27%, ROCE 57.53%, D/E 0.02, promoter holding 60.40%, dividend yield 7.40%. That combination suggests a cash-generating pharma franchise with little leverage and shareholder-friendly distribution. Latest quarter sales ₹420 Cr and net profit ₹62 Cr imply healthy net margin, while profit growth 20.10% outpaces sales growth 7.70%. But the long-term record is troubling: 5-year revenue CAGR -8.74%. A business that shrank revenue over five years is not a classic compounder; it may be a mature, asset-light distributor or portfolio that has lost products/scale. The market asks P/E 23.04 and P/B 9.97 for book value ₹325.31, so I am paying a premium for high returns. Dividend yield 7.40% offers income, but if revenue is declining, the payout needs scrutiny. Piotroski F-Score 3/9 and FairStock 39/100 confirm mixed fundamentals. The stated FCF figure, ₹358.27 lakh Cr, is so large versus ₹7,469 Cr market cap that I would verify it before treating it as real. Debt-free quality is attractive, but not enough without growth. At ₹3242.90, near the 52W low of ₹2908.15 but far below ₹4898.00, sentiment may be poor. For a Graham margin of safety, I want either revenue stabilization or a lower P/B. I would watch quarterly sales, profit trajectory, dividend sustainability, and whether ROE/ROCE remain high. This looks like a Slow Grower with a strong balance sheet but uncertain growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer