Shares of Sanofi India rose 5.5% on February 27, extending gains into the second session on strong quarterly earnings.

Shares of the pharmaceutical company were trading at Rs 5,324 on the National Stock Exchange at 1:7 pm, up 4.84% from the previous close. The stock also tested an intraday high of Rs 5,869.90.

Today, 100,000 shares changed hands on exchanges, well above the one-month daily average of 17,000 shares.

The drugmaker’s net income rose 45% yearly as operating solid performance more than offset a 2.3% decline in revenue. Its EBITDA margin jumped 635 basis points to 24.84%, driven by lower input costs.

Brokerage firm JM Financial Institutional Securities is positive about the new “India for India” growth strategy unveiled by the firm’s new managing director Rodolfo Hrosz.

Under the new plan, the company will focus on core growth pillars, namely diabetes, consumer healthcare, end-to-end innovation and go-to-market strategy. JM Financial also believes that Sanofi India’s efforts to reallocate resources to reduce overlap will gradually improve its operational efficiency. Elara Capital also maintains a bullish view on the stock with a “buy” rating and a price target of Rs 7,000, reflecting an upside potential of 26% from Friday’s close. The brokerage also believes the drugmaker’s valuation is attractive at current levels.