BSE:540596

Stock Analysis Report

Executive Summary

Eris Lifesciences Limited manufactures and markets pharmaceutical products in India.

Snowflake

Flawless balance sheet with high growth potential.

Rewards

Earnings are forecast to grow by 23.92% next year

Earnings grew by 8.4% over the past year

Risk Analysis

No risks detected for 540596 from our risk checks.

Share Price & News

How has Eris Lifesciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540596 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

540596

-2.1%

IN Pharmaceuticals

-1.1%

IN Market


1 Year Return

-27.2%

540596

-13.4%

IN Pharmaceuticals

5.5%

IN Market

Return vs Industry: 540596 underperformed the Indian Pharmaceuticals industry which returned -13.4% over the past year.

Return vs Market: 540596 underperformed the Indian Market which returned 5.5% over the past year.


Shareholder returns

540596IndustryMarket
7 Day0.3%-2.1%-1.1%
30 Day-1.5%9.1%5.8%
90 Day6.4%3.4%9.0%
1 Year-27.2%-27.2%-12.6%-13.4%7.6%5.5%
3 Yearn/a-16.6%-18.4%32.3%25.6%
5 Yearn/a-12.2%-14.9%39.1%26.3%

Price Volatility Vs. Market

How volatile is Eris Lifesciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

March Stocks To Look Out For

1 year ago | Simply Wall St

March Stocks To Look Out For

1 year ago | Simply Wall St

March Stocks To Look Out For

Valuation

Is Eris Lifesciences undervalued compared to its fair value and its price relative to the market?

18.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540596 (₹422.45) is trading above our estimate of fair value (₹260.11)

Significantly Below Fair Value: 540596 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540596 is poor value based on its PE Ratio (18.7x) compared to the Pharmaceuticals industry average (16.3x).

PE vs Market: 540596 is poor value based on its PE Ratio (18.7x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: 540596 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 540596 is overvalued based on its PB Ratio (4.4x) compared to the IN Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is Eris Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540596's forecast earnings growth (20.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 540596's earnings (20.3% per year) are forecast to grow faster than the Indian market (18.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540596's revenue (14.1% per year) is forecast to grow faster than the Indian market (11.1% per year).

High Growth Revenue: 540596's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540596's Return on Equity is forecast to be high in 3 years time (25.5%)


Next Steps

Past Performance

How has Eris Lifesciences performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540596 has high quality earnings.

Growing Profit Margin: 540596's current net profit margins (30.7%) are higher than last year (30.4%).


Past Earnings Growth Analysis

Earnings Trend: 540596's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: 540596's earnings growth over the past year (8.4%) is below its 5-year average (19.7% per year).

Earnings vs Industry: 540596 earnings growth over the past year (8.4%) underperformed the Pharmaceuticals industry 18.6%.


Return on Equity

High ROE: 540596's Return on Equity (23.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eris Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: 540596's short term assets (₹5.3B) exceeds its short term liabilities (₹1.4B)

Long Term Liabilities: 540596's short term assets (5.3B) exceeds its long term liabilities (877.9M)


Debt to Equity History and Analysis

Debt Level: 540596's debt to equity ratio (0.01%) is considered satisfactory

Reducing Debt: 540596's debt to equity ratio has reduced from 2.5% to 0.01% over the past 5 years.

Debt Coverage: 540596's debt is well covered by operating cash flow (146034.3%).

Interest Coverage: 540596's interest payments on its debt are well covered by EBIT (33.1x coverage).


Balance Sheet

Inventory Level: 540596 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540596's debt is covered by short term assets (assets are 2985.7x debt).


Next Steps

Dividend

What is Eris Lifesciences's current dividend yield, its reliability and sustainability?

0.31%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540596's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540596's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 540596's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540596's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 540596 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 540596's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Eris Lifesciences's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average board tenure


CEO

Amit Bakshi (45yo)

0yrs

Tenure

₹49,136,656

Compensation

Mr. Amit Indubhushan Bakshi serves as Chairman and Managing Director at Eris Lifesciences Limited. Mr. Bakshi has an extensive experience of Indian Pharmaceutical industry and handles Strategic Management  ...


CEO Compensation Analysis

Compensation vs Market: Amit's total compensation ($USD688.54K) is above average for companies of similar size in the Indian market ($USD353.67K).

Compensation vs Earnings: Amit's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.4yrs

Average Tenure

48yo

Average Age

Experienced Board: 540596's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹100,308,35928 May 19
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares185,000
Max Price₹542.21
Buy₹51,441,55302 Feb 19
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares81,333
Max Price₹632.48
Buy₹730,52006 Dec 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares1,183
Max Price₹617.52
Buy₹10,424,08130 Nov 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares17,111
Max Price₹617.51
Buy₹40,446,27823 Nov 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares65,500
Max Price₹617.50
Buy₹9,072,39121 Nov 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares14,737
Max Price₹615.62
Buy₹2,759,83116 Nov 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares4,468
Max Price₹617.69
Buy₹33,827,52014 Nov 18
Amit Bakshi
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares57,591
Max Price₹587.38

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Alok Mahajan (44yo)

    Vice President

    • Tenure: 0yrs
  • Amit Bakshi (45yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹49.14m
  • Inderjeet Negi (48yo)

    Whole-Time Executive Director

    • Tenure: 12.8yrs
    • Compensation: ₹12.99m
  • Kaushal Shah (40yo)

    Head of Manufacturing & Distribution

    • Tenure: 0yrs
    • Compensation: ₹7.37m
  • Rajendrakumar Patel (42yo)

    Head of Procurements

    • Tenure: 0yrs
  • Sachin Shah (40yo)

    Chief Financial Officer

    • Tenure: 3.2yrs
    • Compensation: ₹10.72m
  • Milind Talegaonkar

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹2.92m
  • Vijay Joshi (67yo)

    President

    • Tenure: 0yrs
  • Viraj Suvarna (40yo)

    Vice President

    • Tenure: 0yrs

Board Members

  • Vijaya R. Sampath (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹725.00k
  • Prashant Gupta (40yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: ₹875.00k
  • Amit Bakshi (45yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹49.14m
  • Inderjeet Negi (48yo)

    Whole-Time Executive Director

    • Tenure: 12.8yrs
    • Compensation: ₹12.99m
  • Kirit Shelat (73yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹925.00k

Company Information

Eris Lifesciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eris Lifesciences Limited
  • Ticker: 540596
  • Exchange: BSE
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹57.435b
  • Shares outstanding: 137.52m
  • Website: https://www.eris.co.in

Number of Employees


Location

  • Eris Lifesciences Limited
  • Commerce House IV
  • 8th Floor
  • Ahmedabad
  • Gujarat
  • 380015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERISNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2017
540596BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2017

Biography

Eris Lifesciences Limited manufactures and markets pharmaceutical products in India. It offers various branded formulations in various therapeutic areas, such as cardiovascular, anti–diabetes, vitamins/nut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 12:59
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.