Buy Eris Lifesciences, target price Rs 825: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Eris Lifesciences with a target price of Rs 825. The current market price of Eris Lifesciences Ltd. is Rs 699.15. Time period given by analyst is one year when Eris Lifesciences Ltd. price can reach defined target.

Eris Lifesciences Ltd., incorporated in the year 2007, is a Mid Cap company (having a market cap of Rs 9395.71 Crore) operating in Pharmaceuticals sector.

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


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 401.32 Crore, up 27.81 % from last quarter Total Income of Rs 314.01 Crore and up 13.01 % from last year same quarter Total Income of Rs 355.14 Crore. Company has reported net profit after tax of Rs 93.08 Crore in latest quarter.

Investment Rationale
Entered in to in-licensed agreement with Biocon and expects “Glargine” launch in Q3FY23. Guided 30% revenue growth and 16-17% EBITDA growth for FY23. Over next 2 quarters guided for 200bps dip in GMs as lot of new products are getting bunched up for launches. Guided revenue of Rs200m and EBITDA loss of Rs150mn for insulin business in FY23.

Promoter/FII Holdings
Promoters held 52.3 per cent stake in the company as of 30-Jun-2022, while FIIs owned 15.35 per cent, DIIs 10.67 per cent.