Sanofi Consumer (SANOFICONR)

FairStock Score: 38/100 — MIXED

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

Key Financials

Strengths

• Exceptional profitability: ROE of 87.95% and ROCE of 152.07% reflect strong brand economics and asset-light operations.
• Negligible financial risk: Debt/Equity of 0.06 and a Piotroski F-Score of 7 suggest a healthy balance sheet.
• Very strong promoter holding of 71.27% aligns minority interests with long-term value creation.
• Rapid growth: Sales grew 47.04% and profit 43.47%, with latest quarter profit of ₹67 Cr on ₹251 Cr sales.
• Reasonable PEG of 0.97 indicates the current P/E is not entirely out of step with near-term growth.

Concerns

• Rich absolute valuation: P/E of 43.99 and P/B of 41.60 leave little room for a growth stumble.
• The reported FCF of ₹127.16 lakh Cr appears inconsistent with the company’s actual scale and likely is a data misstatement.
• Low dividend yield of 1.23% limits shareholder cash returns despite high profitability.
• Any slowdown in consumer health demand or stricter regulation could hit the high multiple hard.

AI Analysis

A business with an 88% return on equity and 152% ROCE immediately catches my eye. Sanofi Consumer is an exceptional franchise, backed by a 71% promoter stake and negligible debt. This is exactly the kind of capital-light, brand-driven consumer health business I love. Growth is torrid: sales up 47%, profits up 43%, and the latest quarter still clocks ₹251 Cr revenue with ₹67 Cr profit. A Piotroski score of 7 confirms fundamentals are sound. But I must be the disciplined investor Graham taught me to be. At ₹4,590, the market is asking 44 times earnings and 41.6 times book value for this quality. The PEG of 0.97 softens the blow, suggesting the growth rate currently justifies the multiple, but that leaves no margin for error. The reported free cash flow of ₹127.16 lakh Cr is utterly implausible next to a ₹10,339 Cr market cap and roughly ₹250 Cr annualised profit—I discard that number as a data error. Dividend yield of 1.23% is not for income seekers. I'm told the FairStock score is a mixed 51, and I agree. Wonderful business, but I need the price to come to me. Buffett's first rule: never overpay for a great company, because the maths of high expectations are unforgiving. For now, I watch and wait, staying within my circle of competence.

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