Eris Lifesciences Ltd – Therapeutic returns
Eris was incorporated as a public company in February 2007. It is engaged in manufacturing and marketing branded finished dosages in the Indian Pharmaceutical Market since 2007.
It has a presence in the high-growth chronic and acute therapeutic areas that require the high intervention of specialists and super specialists.
Its diverse product portfolio comprises 80+ mother brand groups that are focused primarily on lifestyle-related disorders. The company has drugs for Anti-Diabetes, Cardiovascular, Gastroenterology and Gynecology, Anti-Infectives, Vitamins, and other therapeutic areas.
We believe Eris’ focus on lifestyle-related disease therapies will continue to drive growth in its chronic category. In the last ten years, Eris clocked a steady revenue and PAT CAGR growth of 17/27%. We believe the margin should remain around 35-36% over the next few years, the highest among all domestic formulation companies. We recommend an ACCUMULATE rating on the stock with a revised Target price (TP) of Rs.800, 22x FY24E EPS.
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