Eris Lifesciences is one of the fastest growing companies within the chronic and acute categories of the Indian Branded Formulations markets such as cardiovascular, diabetes, gastroenterology, nephrology, gynaecology, paediatrics, orthopaedics, pain management, oncology, infertility management, neurology and psychiatry etc.
|Market Cap. (Cr.)||7339.62|
|52 Wk. high/low||593.40/341.05|
|Book Value (Rs)||104.43|
Share Holding Pattern %
|Non Promoter Corp.||0.17|
|Public & Others
Eris Lifesciences Ltd reported a growth of 16.16 per cent in its consolidated profit after tax (PAT) for the quarter ended September 30, 2020. The company’s consolidated total income, on the other hand, grew 14.52 per cent to Rs 332.07 crore as compared to Rs 289.96 crore in Q2FY20.
The company is having some very interesting launches starting from December this year extending to June of the next year. It has visibility of launching seven products, which are a mix of in-license as well as out of patent and some formulation R&D. The pipeline is very rich that company have not seen in the last 10-year.
During the second quarter its continued to focus on super-specialty and execution led to a ninth straight quarter of outperformance in the core cardio metabolic and vitamin-mineral-nutrients (VMN) segment, which formed 80 per cent of sales. The company was also ranked fifth in the oral diabetes market with a share of 5.7 per cent in Q2FY21 as compared to 5.1 per cent in Q2FY20. 7 out of Eris’s Top 15 mother brands gained market share in Q2FY21.
Diabetes Care is largest therapy area of the company, contributing 29% to revenue of the company. The Top 4 Mother Brands in the Diabetes segment are Glimisave, Tendia, Cyblex and Zomelis – all outgrew their respective markets and gained market share. Over the years, Diabetes Care segment has grown 1.7x faster than the market at a CAGR of 32% over FY 11 to FY 20.
Company’s Revenue from Operations increased by 9.4% in FY20 to Rs.1074 Crore from Rs. 982 crore in FY19. The company expect debtors to decrease in future and target for Q1FY22 that the debtor days to come down to around 40-days kind of numbers from 53 days at present.
ERIS ranked among the top 5 by prescription share among diabetologists and cardiologists. Eris’s significantly high contribution from chronic and sub chronic therapies (89% of total) positions it well for long-term sustainable growth, given that increased awareness, higher detection, and improved patient compliance have led to chronic segments consistently outperforming acute segments. Out of the seven products that company has planned for launch in the next 6 to 9 months, at least four of them have a real big scope. The company is at still 1%-1.2% of the market share that gives it a huge opportunity in the Indian market. On performance front we expect company to report EPS of Rs.27.6 for FY21E, at CMP of Rs.547 PE works out to be 19.7x. Hence, investors can buy the stock at CMP of Rs.547 for target price of Rs.680. Time frame should be 9-12months.
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