- 16 Sep 2024
- ICICI Securities
SANOFI INDIA'S CONSUMER HEALTHCARE BUSINESSES GOT LISTED ON THE EXCHANGES
News: Sanofi India Limited demerged its consumer healthcare business into a separate legal entity which was listed on the exchanges (closing price Rs 4909; market cap- Rs 11293 crore). Upon demerger, Sanofi continued to own 60.4% stake in both entities and Sanofi India Limited shareholders received 1:1 Sanofi Consumer Healthcare equity share of Rs 10/- each, for each equity share owned by Sanofi India.
Views: The Company’s top consumer healthcare brands include Allegra (Anti-allergic), DePURA (Vitamins), Avil (Anti-allergic) and Combiflam (pain management). For H1 the company reported sales of Rs 376 crore with GPM and EBITDAM of 72% and 39% respectively. The company is facing some issues with suppliers, and it has recently recalled a few products. Extrapolating the EBITDA and assuming 15% growth for the next two years, the current valuation is at 30x EBITDA, which looks a tad higher given the slower growth rates and product recall issues.
Impact: Neutral