🧠 At a Glance:
Formed via demerger in 2023, Sanofi Consumer Healthcare India Ltd (SCHIL) is the newly minted OTC pharma kid on the block. With 111% ROCE, nearly ₹170 Cr PAT in its first year, and a whopping 70% dividend payout, it’s acting like a sugar daddy — but its 63x P/E tells us the market already priced in a Nobel Prize.
🏭 About the Company
- Sector: Pharmaceuticals (OTC / Consumer Health)
- Incorporated: 2023 (via demerger from Sanofi India Ltd)
- Business: Self-care solutions in pain relief, wellness, allergy, etc.
- Flagship Products: Combiflam, Allegra, Enterogermina, and other household Rx legends now OTC.
It’s like your neighbourhood chemist got VC-funded and started branding his Crocin.
🧔 Key Managerial Personnel
- Chairman & Non-Exec: Rajaram Narayanan (CEO of Sanofi India pre-demerger)
- MD & CEO: Neeraj Sharma (post-demerger lead)
- CFO: Probably someone with a calculator and a dividend fetish.
💸 Financials (FY24 + TTM since incorporation)
| ₹ in Cr | Dec 2023 (8M) | Dec 2024 | TTM |
|---|---|---|---|
| Revenue | 555 | 724 | 668 |
| EBITDA | 219 | 271 | 253 |
| PAT | 165 | 181 | 168 |
| OPM % | 39% | 37% | 38% |
| EPS (₹) | — | 78.59 | 73.08 |
| ROCE % | — | 111% | 111% |
| ROE % | — | 84% | 84% |
💰 This company was born rich — no startup struggle, just straight to 💸 ₹11,798 Cr market cap and premium margins.
🏦 Balance Sheet
| ₹ in Cr | Dec 2023 | Dec 2024 |
|---|---|---|
| Equity Capital | 2 | 23 |
| Reserves | 206 | 250 |
| Borrowings | 0 | 20 |
| Fixed Assets | 5 | 29 |
| Total Liabilities | 345 | 431 |
| Total Assets | 345 | 431 |
Capital-light with just ₹29 Cr fixed assets and ₹250 Cr reserves — and yet ₹11,798 Cr market cap. That’s 472x reserves. IPO bros could never.
💸 Cash Flow Overview
| ₹ in Cr | Dec 2023 | Dec 2024 |
|---|---|---|
| CFO | -0 | 439 |
| CFI | 0 | 2 |
| CFF | 2 | -116 |
| Net Cash Flow | 2 | 325 |
CFO jumped from nothing to ₹439 Cr — this isn’t cash flow, it’s cash fireworks. And yet, 70% of it was distributed. Classic sugar daddy behavior.
🔍 Shareholding Breakdown (as of Mar 2025)
| Category | Holding % |
|---|---|
| Promoters | 60.40% |
| FIIs | 4.52% |
| DIIs | 25.48% |
| Public | 9.59% |
| No. of Shareholders | 51,859 |
FIIs have been exiting slowly, while DIIs seem to be loading up. Either smart money is confused… or we’re watching a hot potato game.
🧮 Forward-Looking Fair Value (FV) Estimate
- PAT = ₹168 Cr (TTM)
- Assume moderate growth @ 12–15% CAGR over 2 years
- FY26E PAT = ₹210–220 Cr
- Apply P/E range: 35–40 (for consumer health peers like Dabur, Emami, etc.)
- Fair Value Range: ₹7,350 – ₹8,800 Cr
Current Market Cap = ₹11,798 Cr
So yes… it’s overvalued by 25–35% even with generous assumptions
🧪 Industry & Growth Outlook
- Consumer Health Boom: Self-medication trend rising post-COVID
- Demerger Advantage: Focused strategy, lean structure
- Open Offer Activity (2025): Clayton, Dubilier & Rice + Opal Bidco came in with an offer for 26% stake — that’s some serious institutional flirting
- Dividend Appeal: 70% payout ratio is top-tier pharma sugar
🤓 EduInvesting Take
Sanofi Consumer is like that rich cousin who inherited family property, repackaged it into an “urban organic healing retreat,” and is now selling ₹100 painkillers as “wellness shots.”
✅ Debt-light
✅ Strong brand recall
✅ 111% ROCE
✅ Dividend machine
⚠️ But…
- Trading at 63x earnings and 43x book
- Slow revenue growth (~6%)
- Other income turned negative in FY24
So while it’s sexy on paper, you’re paying for a startup at unicorn valuation… without the unicorn growth.
⚠️ Risks & Red Flags
- Valuation froth: Even consumer plays like Emami trade cheaper
- Other income dipped to -₹13 Cr
- Promoter dilution risk: via open offer fallout?
- Thin moat: OTC brands need ad money — and ad money needs deeper pockets
Tags: sanofi consumer healthcare india 5 year recap, sanofi demerger analysis, otc pharma india, dividend stocks 2025, sanofi open offer news, high ROCE pharma india
Author: Prashant Marathe
Date: 12 June 2025
