NSEI:ERIS

Stock Analysis Report

Executive Summary

Eris Lifesciences Limited manufactures and markets pharmaceutical products in India.

Rewards

Earnings are forecast to grow 16.89% per year

Earnings have grown 19.7% per year over the past 5 years

Risk Analysis

No risks detected for ERIS from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.

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: ERIS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

ERIS

1.3%

IN Pharmaceuticals

-0.1%

IN Market


1 Year Return

-25.2%

ERIS

1.9%

IN Pharmaceuticals

10.4%

IN Market

Return vs Industry: ERIS underperformed the Indian Pharmaceuticals industry which returned -5.2% over the past year.

Return vs Market: ERIS underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

ERISIndustryMarket
7 Day0.2%1.3%-0.1%
30 Day12.0%5.5%1.8%
90 Day12.7%8.1%3.7%
1 Year-25.2%-25.2%3.0%1.9%12.4%10.4%
3 Yearn/a-8.5%-10.5%28.8%21.7%
5 Yearn/a-12.1%-14.8%35.7%23.4%

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

Valuation

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

22.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ERIS (₹512.05) is trading above our estimate of fair value (₹301.02)

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


Price To Earnings Ratio

PE vs Industry: ERIS is poor value based on its PE Ratio (22.6x) compared to the Pharmaceuticals industry average (16.4x).

PE vs Market: ERIS is poor value based on its PE Ratio (22.6x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: ERIS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ERIS is overvalued based on its PB Ratio (5.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Eris Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERIS's forecast earnings growth (16.9% per year) is above the savings rate (6.5%).

Earnings vs Market: ERIS's earnings (16.9% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: ERIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ERIS's revenue (12.8% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: ERIS's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERIS's Return on Equity is forecast to be high in 3 years time (23.5%)


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: ERIS has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: ERIS earnings growth over the past year (8.4%) underperformed the Pharmaceuticals industry 19.2%.


Return on Equity

High ROE: ERIS'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: ERIS's short term assets (₹5.3B) exceed its short term liabilities (₹1.4B).

Long Term Liabilities: ERIS's short term assets (₹5.3B) exceed its long term liabilities (₹877.9M).


Debt to Equity History and Analysis

Debt Level: ERIS's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: ERIS's debt to equity ratio has reduced from 2.5% to 1% over the past 5 years.

Debt Coverage: ERIS's debt is well covered by operating cash flow (1885.1%).

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


Balance Sheet

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

Debt Coverage by Assets: ERIS's debt is covered by short term assets (assets are 38.5x debt).


Next Steps

Dividend

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

0.30%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.5%markettop25%2.3%industryaverage0.8%forecastin3Years0.3%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ERIS'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 ERIS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERIS'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?

2.6yrs

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 ($USD693.40K) is above average for companies of similar size in the Indian market ($USD390.22K).

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


Board Age and Tenure

2.6yrs

Average Tenure

48yo

Average Age

Experienced Board: ERIS's board of directors are not considered experienced ( 2.6 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

Ownership Breakdown

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


Management Team

  • Alok Mahajan (44yo)

    Vice President

    • Amit Bakshi (45yo)

      Chairman & MD

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

      Whole-Time Executive Director

      • Tenure: 13yrs
      • Compensation: ₹12.99m
    • Kaushal Shah (40yo)

      Head of Manufacturing & Distribution

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

      Head of Procurements

      • Sachin Shah (40yo)

        Chief Financial Officer

        • Tenure: 3.3yrs
        • Compensation: ₹10.72m
      • Milind Talegaonkar

        Compliance Officer & Company Secretary

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

        President

        • Viraj Suvarna (40yo)

          Vice President


          Board Members

          • Vijaya R. Sampath (66yo)

            Independent Director

            • Tenure: 2.9yrs
            • Compensation: ₹725.00k
          • Prashant Gupta (40yo)

            Independent Director

            • Tenure: 1.8yrs
            • Compensation: ₹875.00k
          • Amit Bakshi (45yo)

            Chairman & MD

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

            Whole-Time Executive Director

            • Tenure: 13yrs
            • Compensation: ₹12.99m
          • Kirit Shelat (73yo)

            Independent Director

            • Tenure: 2.3yrs
            • 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: ERIS
          • Exchange: NSEI
          • Founded: 2007
          • Industry: Pharmaceuticals
          • Sector: Pharmaceuticals & Biotech
          • Market Cap: ₹69.523b
          • 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/nutrients, gastroenterology, gynecology, pediatrics, respiratory, neurology, psychiatry, and pain/analgesics. The company was incorporated in 2007 and is based in Ahmedabad, India. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/28 13:12
          End of Day Share Price2020/01/28 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.