The shares of Sanofi India appreciated to the tune of 5% on Monday’s early trades to reach an intraday high of ₹ 5626.50 apiece after the company reported its results and declared a dividend of ₹ 377 per share. Its shares were trading at ₹ 5559.90 apiece at 11:42 AM.
The board of directors of Sanofi India in their meeting held on Thursday 23rd February 2023 considered and recommended a final dividend of ₹ 194 per share and a second special dividend of ₹ 183 per equity share of the face value of ₹ 10 each. This dividend is subject to the approval of the shareholders of the company. Earlier, the company had paid a one time special interim dividend of ₹ 193 per share on August 22nd, 2022.
The total dividend per share paid by the company including the above dividend amounts to ₹ 570 in the current financial year. This dividend, if approved by the shareholders, will be paid on or after May 22, 2023. The company currently has a dividend yield of 3.38%, but with the latest announcement on dividends, its dividend yield will increase to 10.25%.
The company has approved the convening of the 67th AGM of the Company on Thursday, May 11, 2023, through video conferencing or other audio-visual means. Further details of the AGM will be issued in due course.
The company will close its register of members from Saturday 29th April 2023 to Thursday, May 11, 2023, for the purpose of payment of the final and second special dividend for the year 2022. Therefore, shareholders who wish to receive the dividend will have to buy the shares on or before Thursday, 27th April 2023 in order to be eligible to receive the dividend as Sanofi India comes under T+1 Settlement.
The pharmaceutical company reported an increase of 44% in its profit after tax on a year-on-year basis at ₹ 1904 crores. It reported a profit after tax of ₹ 1322 crores in the corresponding quarter last year.
Sanofi India is a small-cap company with a market capitalization of ₹ 12,341 crores. It has an excellent return on equity of 35.45% and an ideal debt-to-equity ratio of 0.02. The company’s shares were trading at a price-to-earnings ratio of 19.89 which is lower than the industry P/E of 29.58, indicating that the stock may be undervalued as compared to its peers.
Written by Simran Bafna
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