Prabhudas Lilladher's research report on Eris Lifesciences
Eris Lifesciences (ERIS) reported muted performance during the quarter, due to higher promotional expenses from new launches. However, we maintain our estimates and continue to believe benefits of operating leverage will play out, as revenue scales up from these new launches. Acquisition of Oaknet and Glenmark’s derma portfolio to strengthen Eris’s entry in the derma segment, which is currently operating at sub optimal profitability. Eris’s turnaround of Strides acquired portfolio provides comfort for similar executions. The company continues to outperform core cardio metabolic market which expects robust growth over next three years with wide patent expiration opportunities.
Outlook
We maintain our ‘BUY’ rating at TP of Rs850, valuing 16x EV/EBITDA on Sept FY24E.
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