Eris Lifesciences - Strong Runway For Growth: Nirmal Bang

"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..Nirmal Bang Report.Eris Lifesciences Ltd.’s adjusted net profit is expected to clock 31% compound annual growth rate over FY23-FY25E mainly on the back of 21.7% CAGR in revenue and improvement of 452 basis points in Ebitda margin to 36.4%. Ebitda margin is expected to improve from here on mainly on the back of: Sharp improvement in Oaknet margins and MR productivity with consolidation of the acquired Dr. Reddy’s Laboratories Ltd. and Glenmark Pharmaceuticals Ltd.'s portfolios, shifting to in-house manufacturing and synergy benefits with the standalone business,Reduced loss in the Insulin segment (expected to reach breakeven in FY24) andOperational leverage, especially driven by scale-up in new launches.Industry-leading growth in revenue is expected to continue due to its strong focus on the chronic portfolio, market share gain in existing products, new launches and potential inorganic growth opportunities. The company is currently trading at 22.3 times/17.3 times price-to-earning on FY24E/FY25E and 15.2 times/11.8 times enterprise value/Ebitda on FY24E/FY25E numbers. We like Eris Life due to its pure domestic play, speciality focus, strong financials, healthy balance sheet and high return ratios. We maintain 'Buy' with a target price of Rs 1,022, valuing it at 14 times June-25E EV/Ebitda. We value Eris Life on EV/Ebitda basis as it removes tax rate volatility (especially post the Guwahati plant coming out from eligible tax exemption) and focus on the core operational performance..Click on the attachment to read the full report:.Pharma I U.S. Prescription Trends - Favorable Movement For Most Names: Systematix.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 - Strong Runway For Growth: Nirmal Bang

We like Eris due to its pure domestic play, specialty focus, strong financials, healthy balance sheet and high return ratios.

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Eris Lifesciences - Strong Runway For Growth: Nirmal Bang

We like Eris due to its pure domestic play, specialty focus, strong financials, healthy balance sheet and high return ratios.

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