Prabhudas Lilladher's research report on Eris Lifesciences
Eris Lifesciences (ERIS) Q1FY25 EBITDA was in line with our estimate (Rs2.5bn; 47% YoY). Eris has opted for inorganic route to diversify and scale up existing portfolio. This has been implemented without diluting margins. We expect margins to sustain at +35% as revenue scales up from recent acquisitions which is currently operating at sub optimal profitability. The company has multiple growth levers such as broad based offerings in derma segment, opportunities in cardio metabolic market with patent expirations and benefits of operating leverage, as revenue scales up from these acquisitions.
Outlook
Our FY25 and FY26E EBITDA stands broadly unchanged while PAT for FY25 stand reduced by 8% due to higher tax. Our FY26E EPS broadly remain unchanged. We maintain ‘BUY’ rating with revised TP of Rs1,250.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
