Eris Lifesciences Ltd. share price target

We initiate coverage on Eris as a BUY with a price target of Rs 1,060,

Q2FY18 EBITDA grew 32% YoY (~15% above our estimate) led by 25% YoY growth in topline (15% YoY on standalone basis). EBITDA margin improved 210 bps YoY driven by operating leverage.

Eris Lifesciences Ltd (ELL) is a developer cum manufacturer of branded pharmaceutical products in select therapeutic areas of cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-infectives. Company's product portfolio comprises of 80 mother brand groups with the top 10 brands contributing as much as 75% of their total revenues. ELL is primarily focusing on lifestyle diseases encompassing both the chronic (65%) and acute segments(35%). They are currently the fastest growing company among the top 25 players in the chronic segment. It...

Recently, the stock price of Eris Lifesciences Ltd. (Eris) corrected by ~22 from 52-week high of Rs.728 as the company has reported below expected numbers in the recent quarters. Eris focuses on lifestyle related disorders, which are chronic in nature. Hence, the main target of the company is specialist and super specialist doctors. It is mainly into select therapeutic areas, such as, CVS, antidiabetics, vitamins, gastroenterology, anti-infectives and gynecology. In FY17, chronic segment generated 66% of total revenues. Even in the acute segment (34% of total revenues), the company focuses on...

Eris has a unique positioning in the India Pharma market. It is 100% into domestic formulations and the 2nd fastest growing (22% CAGR % over FY13-17) among the top 35 pharma companies in India. Eris is ranked 32nd despite being a relatively new entrant (established in 2007).

Focus on branded prescription based pharmaceutical products catering to lifestyle related disorders: Eris has Develop, Manufacture and Commercialize branded prescription based pharmaceuticals products in select chronic and acute therapeutic areas, like Cardiovascular, Anti-Diabetics, Vitamins, Gastroenterology, Anti-Infectives, & Gynaecology. In FY17, they generated 65.6% of their revenues from the chronic category of the IPM. The chronic category accounted for 34.3% of the IPM in FY17 compared to 31.4% of the IPM in FY13, representing growth at a CAGR of 14.3%. They have identified, developed and are marketing products in the acute category, which are connected to...

Eris Lifesciences Ltd Issue Open: June 16 - June 20 2017, Price Band: Rs. 600 - 603

Eris Lifesciences Ltd. (ELL) is a developer, manufacturer and commercializer of branded pharmaceutical products in select therapeutic areas within the chronic and acute categories of the IPM....

Eris Lifesciences Ltd is an Ahmedabad, Gujarat based pharmaceutical company, incorporated in 2007 that is engaged in research, development, manufacturing and selling of select therapeutic areas within the chronic and acute categories of the Indian Pharmaceutical Market. Company's focus has been on developing, manufacturing and marketing products, which are linked to lifestyle related disorders that are chronic in nature and to a target population which primarily consults specialists and superspecialists. Eris products in the chronic category cater primarily to the therapeutic areas including cardiovascular, anti-diabetics and neurology, chronic respiratory and chronic pain (analgesics). In acute category, the product portfolio includes vitamins, gastroenterology, antiinfectives, gynaecology, cute respiratory, acute pain (analgesics), hepatoprotectives, hormones, hematology, dermatology, anti-obesity products and products for injury healing. The product portfolio of the company comprised of 80 Mother Brand Groups as of March 31, 2017. It also owns and...

Since its inception, the company has been focusing on chronic and specialty acute therapeutic segments. This strategy has played well for the company, as it has gained market share in most of the therapeutic segments of its focus. This has also helped the company to become 32nd largest company by revenue in domestic pharma industry within..