Buy Eris Lifesciences, target price Rs 780: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Eris Lifesciences with a target price of Rs 780. The current market price of Eris Lifesciences is Rs 640.85.

Eris Lifesciences, incorporated in the year 2007, is a Mid Cap company (having a market cap of Rs 8701.37 Crore) operating in Pharmaceuticals sector.

Eris Lifesciences key Products/Revenue Segments include Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 425.50 Crore, down -8.63 % from last quarter Total Income of Rs 465.68 Crore and up 26.13 % from last year same quarter Total Income of Rs 337.34 Crore. Company has reported net profit after tax of Rs 100.23 Crore in latest quarter.

The company’s top management includes Mr.Amit Bakshi, Mr.Krishnakumar Vaidyanathan, Mr.Inderjeet Singh Negi, Mr.Kaushal Shah, Mr.Rajeev Dalal, Mr.Vasudevan Sujesh, Ms.Kalpana Unadkat, Mr.Prashant Gupta. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The company has built multiple levers for growth in branded generics space by a)broadening dermatology portfolio through acquisitions, b) adding Insulin and its analogues in the anti-diabetes segment, c) sustained uptick inDPP4/SGLT2 sales, leveraging patient care platform and specialist engagement, and d) adding MRs to increase reach. Considering these factors and attractive valuations, the brokerage reiterate its BUY rating on the stock.

Promoter/FII Holdings
Promoters held 52.29 per cent stake in the company as of 30-Sep-2022, while FIIs owned 15.35 per cent, DIIs 10.69 per cent.