Eris Lifesciences Q4 Results Review: Motilal Oswal Maintains 'Neutral', But Hikes Target Price - Here's Why

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We cut our earnings estimates by 5%/3% for FY26/FY27, factoring in-

1. recombinant human insulin-related supply issues,

2. gradual pick-up in utilization of the Bhopal facility, and

3. gradual move to alternate prescriptions because of certain fixed-dose combninations being banned by regulatory authorities.

We value Eris at 25 times 12 months forward earnings to arrive at our target price of Rs 1,350.

During FY24-25, Eris progressed to secure building blocks in the Diabetes/ Obesity treatment through achieving regulatory milestones, building in-house capacity for manufacturing, and enhancing its marketing reach. Further, it is building capacity and is in the process of getting relevant regulatory approvals for international business in the injectable segment.

Considering these factors and the reduction in financial leverage, we estimate a 15%/17%/44% CAGR in sales/Ebitda/PAT over FY25-27. The current valuations (at 38xFY26E/27xFY27E earnings) adequately capture the earnings upside. Reiterate Neutral.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. 

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.