Shares of Sanofi India rose sharply in Friday's trade following the company's robust numbers in the December 2022 quarter. The company on Thursday reported a 45% jump in net profit to ₹131 crore in Q4CY22 as compared to a net profit of ₹90 crore in the corresponding quarter of last year.
During the quarter, the total operating expenses came in at ₹505 crore, compared to ₹561 crore in the corresponding period last year, resulting in a significant increase in the company's net profit.
However, the revenue from operations came in lower at ₹672 crore, a marginal drop of 2.3% YoY and 2.90% QoQ. In the October-December quarter, the company's operating profit increased by 31.50% to ₹167 crore, with the EBITDA margin increasing by 700 basis points to 25%.
The earnings per share improved to ₹56.84 in Q4 from ₹39.25 in the December 2021 quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 20.6x, which is much lower compared to the industry P/E of 39.6x.
Further, the company announced a final dividend of ₹194 per share along with a second special dividend of ₹183 per share. In August last year, the company announced a special dividend of ₹193 apiece.
The total dividend for the CY2022, including the proposed final dividend, one-time special interim dividend, and second special dividend, amounts to Rs. 570 per equity share.
The company's share price has responded positively to the news, with shares opening at ₹5,600 apiece, compared to the previous closing price of ₹5,358. The stock strengthened further to hit an intraday high of ₹5,626, up by 5%.
On the financial ratio front, the company has zero debt, Trendlyne data showed, while it had an ROE and RoCE of 42.43% and 33.32%, respectively, in CY21.
The company spends most of its earnings on dividend payments, as the payout ratio stands at 89%. In CY22, the company declared an equity dividend amounting to ₹570 apiece. Taking the current market price, the dividend yield stands at 10.17%. In addition, the stock is trading at 5.5 times its book value.
Meanwhile, in the last one year the stock has underperformed in the market, dropping from around ₹7,212 apiece to the current level of ₹5,557, showing a fall of 23%.
The stock hit a 52-week high of Rs. 7,929 apiece on April 08, 2022, and a low of Rs. 5,202 on February 08, 2023, implying that it is currently trading 6.82% above its 52-week low and 30% below its one-year high.
The promoter owns 60.4% of the shares in the company, while foreign portfolio investors and Domestic Institutional Investors each own 7% and 19.2% respectively. Regular shareholders own 13.4%.
08 analysts polled by MintGenie on average have a 'strongbuy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.