Sanofi's Q4CY18 results came marginally below consensus expectations. The Q4 results were affected by spike in raw material and overhead costs, resulting in gross/ EBIDTA margins contracted by 230bps/115bps YoY to 56.9%/18.9%. The revenue growth of 8.4% in Q4CY18 reflects an underperformance in the market (vs. IPM growth of 9.5%) . However, as the Jan2019 AIOCD- AWACS data shows a strong pickup in sales of Sanofi's products (~18% YoY growth Jan-19), we expect subsequent quarters to be stronger. The revenue and net profits grew by 12.5% and Rs16.2% respectively in CY18. We expect Sanofi's sales/EBITDA/net profit to grow by 10%/18%/20%, respectively in CY19. We broadly retain our EPS estimates for CY19. However, the price target is marginally reduced to Rs5,795 (earlier Rs5,936), mainly due...