Buy Eris Lifesciences; target of Rs 780: Motilal Oswal

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26 Aug, 2025 12:21

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Eris Lifesciences (ERIS) delivered in-line 3QFY23. The efforts remain on track for improving the margins of Oaknet, and driving higher sales of Insulin franchise. Recently, it also acquired brands from Glenmark Pharma to considerably enhance its dermatology offering. We reduce our earnings estimate for FY24/FY25 by 4%/5% to factor delay in product launches and moderation in sales of base portfolio. We value ERIS at 21x 12M forward earnings to arrive at a price target of INR780. ERIS has built multiple levers for growth in branded generics space by a) broadening dermatology portfolio through acquisitions, b) adding Insulin and its analogues in the anti-diabetes segment, c) sustained uptick in DPP4/SGLT2 sales, leveraging patient care platform and specialist engagement, and d) adding MRs to increase reach.

Considering these factors and attractive valuations, we reiterate our BUY rating on the stock.

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