Moneycontrol Be a Pro
Get App
Last Updated : Nov 08, 2019 11:53 AM IST | Source: Moneycontrol.com

Accumulate Eris Lifesciences; target of Rs 459: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Eris Lifesciences with a target price of Rs 459 in its research report dated November 07, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Eris Lifesciences


With better traction in CNS portfolio (acquired from Strides) and visibility in core portfolio, Eris sales, EBITDA and PAT grew by 8%, 9% and 9% respectively. EBITDA margin was 37.6%, largely similar with 30 bps expansion YoY. Adjusted for FDC ban, sales growth was 10.4% YoY and contribution from the top 10 products stood at 63% of the total sales. Eris chronic and sub-chronic segment grew at 11.4% YoY versus 10.6% of the Indian pharma market. Whilst its acute therapy portfolio declined 1% versus IPM growth of 12% YoY. NLEM products contributed 8.5% of revenues. With foray in Derma segment and focus on key brands in CVS and diabetes, Eris formed new cardio-metabolic division with addition of 300 people. With 58% contribution of Guwahati plant in revenues, ERIS guided for more capacity utilisation including producitons of Strides portfolio.


Outlook


This helps for better tax management with guidance of 8-10% in FY20E. Guwahati remains to be tax benefit zone till FY24E. With better traction of new products/brands, incremental Rx and net cash position, we expect stronger cash flows and higher return ratios. With stability of sales from the acquired portfolios and better visibility of earnings, we maintain 'Accumulate' and retain TP at Rs459 We maintian 'Accumulate' recommendation.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Nov 8, 2019 11:53 am
Loading...
Sections
Follow us on
Available On