Eris Lifesciences - On An Acquisition Spree To Enhance Derma Portfolio: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The acquisition of nine brands from Dr. Reddy’s Laboratories Ltd. (sales: Rs 500 million for Rs 2.7 billion) is the third deal in the dermatology space over the past 12 months. The valuation in terms of enterprise value/sales stands at 5.4 times /4.8 times for FY23/FY24. This is higher than its earlier acquisitions. Given that the acquisition is funded through debt, we expect the deal to be earnings neutral over the medium term. Although enhancing the derma portfolio is step in the positive direction, increased leverage could slightly dilute the return on capital employed over the medium term.Having said this, we expect 16% earnings per share compound annual growth rate over FY23-25. .Click on the attachment to read the full report:.GSK Pharma Analyst Meet Takeaways - A Mixed Bag: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Eris Lifesciences - On An Acquisition Spree To Enhance Derma Portfolio: Motilal Oswal

Deal to be EPS neutral over the medium term.

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