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Eris Lifesciences

NSEI:ERIS
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERIS
NSEI
₹86B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

Eris Lifesciences Limited develops, manufactures, and markets pharmaceutical products in India. The last earnings update was 84 days ago. More info.


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ERIS Share Price and Events
7 Day Returns
-2.7%
NSEI:ERIS
-1.5%
IN Pharmaceuticals
-1.2%
IN Market
1 Year Returns
-21.2%
NSEI:ERIS
-2%
IN Pharmaceuticals
-2.5%
IN Market
ERIS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Eris Lifesciences (ERIS) -2.7% -1.5% -8.4% -21.2% - -
IN Pharmaceuticals -1.5% 0.2% 0.9% -2% -11.5% 32.3%
IN Market -1.2% 1.4% 4.8% -2.5% 40% 69.9%
1 Year Return vs Industry and Market
  • ERIS underperformed the Pharmaceuticals industry which returned -2% over the past year.
  • ERIS underperformed the Market in India which returned -2.5% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Eris Lifesciences undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Eris Lifesciences to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Eris Lifesciences.

NSEI:ERIS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:ERIS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 35%) (3.21%))
0.831
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.831 * 8.6%)
14.7%

Discounted Cash Flow Calculation for NSEI:ERIS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Eris Lifesciences is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:ERIS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.7%)
2019 2,137.00 Analyst x3 1,863.16
2020 3,085.33 Analyst x3 2,345.28
2021 3,301.67 Analyst x3 2,188.12
2022 3,533.12 Est @ 7.01% 2,041.47
2023 3,786.51 Est @ 7.17% 1,907.53
2024 4,062.38 Est @ 7.29% 1,784.26
2025 4,361.56 Est @ 7.36% 1,670.19
2026 4,685.21 Est @ 7.42% 1,564.22
2027 5,034.69 Est @ 7.46% 1,465.51
2028 5,411.61 Est @ 7.49% 1,373.37
Present value of next 10 years cash flows ₹18,203.10
NSEI:ERIS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹5,411.61 × (1 + 7.55%) ÷ (14.7% – 7.55%)
₹81,430.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹81,430.07 ÷ (1 + 14.7%)10
₹20,665.53
NSEI:ERIS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹18,203.10 + ₹20,665.53
₹38,868.64
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹38,868.64 / 137.52
₹282.64
NSEI:ERIS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:ERIS represents 1.00566x of BSE:540596
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00566x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 282.64 x 1.00566
₹284.24
Value per share (INR) From above. ₹284.24
Current discount Discount to share price of ₹621.50
= -1 x (₹621.50 - ₹284.24) / ₹284.24
-118.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Eris Lifesciences is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Eris Lifesciences's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Eris Lifesciences's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:ERIS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹21.27
BSE:540596 Share Price ** BSE (2019-04-23) in INR ₹618
India Pharmaceuticals Industry PE Ratio Median Figure of 112 Publicly-Listed Pharmaceuticals Companies 19.87x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Eris Lifesciences.

NSEI:ERIS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:540596 Share Price ÷ EPS (both in INR)

= 618 ÷ 21.27

29.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Eris Lifesciences is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
  • Eris Lifesciences is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Eris Lifesciences's expected growth come at a high price?
Raw Data
NSEI:ERIS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
18.7%per year
India Pharmaceuticals Industry PEG Ratio Median Figure of 32 Publicly-Listed Pharmaceuticals Companies 1.38x
India Market PEG Ratio Median Figure of 585 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:ERIS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.06x ÷ 18.7%

1.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Eris Lifesciences is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Eris Lifesciences's assets?
Raw Data
NSEI:ERIS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹74.09
BSE:540596 Share Price * BSE (2019-04-23) in INR ₹618
India Pharmaceuticals Industry PB Ratio Median Figure of 133 Publicly-Listed Pharmaceuticals Companies 1.95x
India Market PB Ratio Median Figure of 3,629 Publicly-Listed Companies 1.1x
NSEI:ERIS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:540596 Share Price ÷ Book Value per Share (both in INR)

= 618 ÷ 74.09

8.34x

* Primary Listing of Eris Lifesciences.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Eris Lifesciences is overvalued based on assets compared to the IN Pharmaceuticals industry average.
X
Value checks
We assess Eris Lifesciences's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Eris Lifesciences has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Eris Lifesciences expected to grow at an attractive rate?
  • Eris Lifesciences's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Eris Lifesciences's earnings growth is expected to exceed the India market average.
  • Eris Lifesciences's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:ERIS Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:ERIS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 18.7%
NSEI:ERIS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 14.4%
India Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20.6%
India Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:ERIS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:ERIS Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 13,588 3,684 4,507 5
2020-03-31 11,885 3,432 3,828 6
2019-03-31 10,297 2,712 3,180 6
NSEI:ERIS Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 9,851 2,925
2018-09-30 9,442 2,870
2018-06-30 9,212 2,945
2018-03-31 8,481 2,346 2,941
2017-12-31 8,026 2,800
2017-09-30 7,781 2,735
2017-06-30 7,277 2,505
2017-03-31 7,205 2,002 2,468
2016-03-31 5,967 1,315 1,112

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Eris Lifesciences's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).
  • Eris Lifesciences's revenue is expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:ERIS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Eris Lifesciences Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ERIS Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 32.73 34.80 30.80 5.00
2020-03-31 27.73 28.60 26.20 5.00
2019-03-31 22.88 24.20 21.80 5.00
NSEI:ERIS Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 21.27
2018-09-30 20.86
2018-06-30 21.42
2018-03-31 21.39
2017-12-31 20.36
2017-09-30 19.89
2017-06-30 18.20
2017-03-31 17.95
2016-03-31 8.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Eris Lifesciences is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Eris Lifesciences's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Eris Lifesciences has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Eris Lifesciences performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Eris Lifesciences's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Eris Lifesciences has delivered over 20% year on year earnings growth in the past 5 years.
  • Eris Lifesciences's 1-year earnings growth is less than its 5-year average (4.5% vs 25.1%)
  • Eris Lifesciences's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (4.5% vs 16.4%).
Earnings and Revenue History
Eris Lifesciences's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Eris Lifesciences Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ERIS Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 9,851.33 2,924.96 2,304.32
2018-09-30 9,441.78 2,869.71 2,257.99
2018-06-30 9,211.58 2,945.19 1,707.53
2018-03-31 8,480.95 2,941.05 2,027.44
2017-12-31 8,025.60 2,799.63 1,931.43
2017-09-30 7,780.59 2,734.54 1,817.79
2017-06-30 7,277.41 2,504.77 1,786.56
2017-03-31 7,205.29 2,467.85 1,736.60
2016-03-31 5,967.13 1,112.16 1,746.15
2015-03-31 5,455.58 892.34 1,631.83
2014-03-31 5,088.22 704.19 1,663.69
2013-03-31 3,930.64 581.98 970.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Eris Lifesciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Eris Lifesciences used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
  • Eris Lifesciences's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Eris Lifesciences's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Eris Lifesciences has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Eris Lifesciences's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Eris Lifesciences's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Eris Lifesciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Eris Lifesciences's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Eris Lifesciences's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Eris Lifesciences Company Filings, last reported 3 months ago.

NSEI:ERIS Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,447.10 2,771.10 816.14
2018-09-30 10,447.10 2,771.10 816.14
2018-06-30 8,859.72 2,741.95 1,127.01
2018-03-31 8,859.72 3,771.28 1,043.67
2017-12-31 7,540.93 4.24 2,665.12
2017-09-30 7,540.93 4.24 2,665.12
2017-06-30 5,399.24 77.59 2,609.04
2017-03-31 5,909.29 77.60 925.21
2016-03-31 2,994.62 37.03 1,371.39
2015-03-31 2,695.90 33.56 749.61
2014-03-31 1,808.59 79.36 742.49
2013-03-31 1,108.33 67.83 513.97
  • Eris Lifesciences's level of debt (26.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4.7% vs 26.5% today).
  • Debt is well covered by operating cash flow (84.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.1x coverage).
X
Financial health checks
We assess Eris Lifesciences's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Eris Lifesciences has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Eris Lifesciences dividends. Estimated to be 0.3% next year.
If you bought ₹2,000 of Eris Lifesciences shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Eris Lifesciences's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Eris Lifesciences's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:ERIS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
India Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 69 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:ERIS Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 1.90 3.00
2020-03-31 1.80 3.00
2019-03-31 1.57 3.00
NSEI:ERIS Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-02-12 0.000 0.000
2017-11-20 0.000 0.000
2017-08-17 0.000 0.000
2017-06-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Eris Lifesciences has not reported any payouts.
  • Unable to verify if Eris Lifesciences's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Eris Lifesciences's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Eris Lifesciences has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (16.9x coverage).
X
Income/ dividend checks
We assess Eris Lifesciences's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Eris Lifesciences afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Eris Lifesciences has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Amit Bakshi
COMPENSATION ₹49,431,268
AGE 44
CEO Bio

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 role for Eris Lifesciences Limited across all functions of business. He previously worked with companies in the pharmaceutical sector in various capacities and has more than 20 years experience in the pharmaceutical industry. He has been a Director at Eris Lifesciences Limited since January 2007. Mr. Bakshi has been recognized as an ‘Entrepreneur of the Year, 2013’ by Ernst & Young.

CEO Compensation
  • Amit's compensation has increased by more than 20% in the past year.
  • Amit's remuneration is about average for companies of similar size in India.
Management Team

Amit Bakshi

TITLE
Chairman & MD
COMPENSATION
₹49M
AGE
44

Rajendrakumar Patel

TITLE
President
AGE
41

Vijay Joshi

TITLE
President
AGE
66

Sachin Shah

TITLE
Chief Financial Officer
COMPENSATION
₹10M
AGE
39
TENURE
2.6 yrs

Milind Talegaonkar

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹2M

Himanshu Shah

TITLE
Whole-Time Executive Director
COMPENSATION
₹10M
AGE
41

Inderjeet Negi

TITLE
Whole-Time Executive Director
COMPENSATION
₹10M
AGE
47

Kaushal Shah

TITLE
Head of Manufacturing & Distribution
COMPENSATION
₹7M
AGE
39
Board of Directors Tenure

Average tenure and age of the Eris Lifesciences board of directors in years:

1.7
Average Tenure
45.5
Average Age
  • The average tenure for the Eris Lifesciences board of directors is less than 3 years, this suggests a new board.
Board of Directors

Amit Bakshi

TITLE
Chairman & MD
COMPENSATION
₹49M
AGE
44

Himanshu Shah

TITLE
Whole-Time Executive Director
COMPENSATION
₹10M
AGE
41
TENURE
1.9 yrs

Inderjeet Negi

TITLE
Whole-Time Executive Director
COMPENSATION
₹10M
AGE
47
TENURE
12.3 yrs

Vijaya R. Sampath

TITLE
Independent Director
COMPENSATION
₹600K
AGE
64

Kirit Shelat

TITLE
Independent Director
COMPENSATION
₹650K
AGE
72
TENURE
1.5 yrs

Prashant Gupta

TITLE
Additional Independent Director
AGE
39
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Eris Lifesciences insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
02. Feb 19 Buy Amit Bakshi Individual 01. Feb 19 01. Feb 19 81,333 ₹632.48 ₹51,441,553
06. Dec 18 Buy Amit Bakshi Individual 05. Dec 18 05. Dec 18 1,183 ₹617.52 ₹730,520
30. Nov 18 Buy Amit Bakshi Individual 28. Nov 18 30. Nov 18 17,111 ₹617.51 ₹10,424,081
23. Nov 18 Buy Amit Bakshi Individual 21. Nov 18 21. Nov 18 65,500 ₹617.50 ₹40,446,278
21. Nov 18 Buy Amit Bakshi Individual 19. Nov 18 20. Nov 18 14,737 ₹615.62 ₹9,072,391
16. Nov 18 Buy Amit Bakshi Individual 14. Nov 18 15. Nov 18 4,468 ₹617.69 ₹2,759,831
14. Nov 18 Buy Sachin Shah Individual 12. Nov 18 12. Nov 18 10,785 ₹597.80 ₹6,447,266
14. Nov 18 Buy Amit Bakshi Individual 12. Nov 18 13. Nov 18 57,591 ₹587.38 ₹33,827,520
X
Management checks
We assess Eris Lifesciences's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Eris Lifesciences has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Buying Eris Lifesciences Limited (NSE:ERIS) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Eris Lifesciences Limited (NSE:ERIS). … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. … While Eris Lifesciences insiders bought shares last year, they didn't sell

Simply Wall St -

Don't Sell Eris Lifesciences Limited (NSE:ERIS) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Eris Lifesciences Limited's (NSE:ERIS) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Eris Lifesciences's Price To Earnings Ratio

Simply Wall St -

Can Eris Lifesciences Limited's (NSE:ERIS) ROE Continue To Surpass The Industry Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.28 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Insiders Buying Eris Lifesciences Limited (NSE:ERIS) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Eris Lifesciences Limited (NSE:ERIS). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In any event it's generally a positive if insiders are buying shares at around the current price.

Simply Wall St -

Don't Sell Eris Lifesciences Limited (NSE:ERIS) Before You Read This

We'll show how you can use Eris Lifesciences Limited's (NSE:ERIS) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate Eris Lifesciences's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

An Examination Of Eris Lifesciences Limited (NSE:ERIS)

Eris Lifesciences Limited (NSE:ERIS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of ERIS, it

Simply Wall St -

Can Eris Lifesciences Limited (NSE:ERIS) Maintain Its Strong Returns?

Eris Lifesciences has a ROE of 33%, based on the last twelve months. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.33. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Is The Future Prospect For Healthcare And Eris Lifesciences Limited (NSE:ERIS)?

operates in the healthcare industry,. … Pharma companies, in particular, are operating in a difficult environment prompted by a more challenging healthcare agenda … This is illustrated by the growing pressure for innovative, cost-effective treatments, along with higher requirements for transparency from regulators and healthcare providers

Simply Wall St -

Is Eris Lifesciences Limited's (NSE:ERIS) ROE Of 33.29% Sustainable?

With an ROE of 33.29%, Eris Lifesciences Limited (NSE:ERIS) outpaced its own industry which delivered a less exciting 10.69% over the past year. … With more debt, ERIS can invest even more and earn more money, thus pushing up its returns. … View our latest analysis for Eris Lifesciences

Simply Wall St -

What You Must Know About Eris Lifesciences Limited's (NSE:ERIS) Financial Strength

While small-cap stocks, such as Eris Lifesciences Limited (NSE:ERIS) with its market cap of ₹95.85b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Company Info

Description

Eris Lifesciences Limited develops, manufactures, and markets pharmaceutical products in India. It offers various branded formulations in various therapeutic areas, such as cardiovascular, anti–diabetes, vitamins, gastroenterology, gynecology, and anti-infectives. The company was incorporated in 2007 and is based in Ahmedabad, India.

Details
Name: Eris Lifesciences Limited
ERIS
Exchange: NSEI
Founded: 2007
₹86,383,051,691
137,519,783
Website: http://www.eris.co.in
Address: Eris Lifesciences Limited
Commerce House IV,
8th Floor,
Ahmedabad,
Gujarat, 380015,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 540596 Equity Shares Mumbai Stock Exchange IN INR 29. Jun 2017
NSEI ERIS Equity Shares National Stock Exchange of India IN INR 29. Jun 2017
Number of employees
Current staff
Staff numbers
3,266
Eris Lifesciences employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 13:02
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/01/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.