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Last Updated on: 27 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

ERIS Lifesciences Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 26, 2024, 10:04 pm

Market Cap 20,180 Cr.
Current Price 1,476
High / Low1,522/809
Stock P/E58.1
Book Value 204
Dividend Yield0.00 %
ROCE11.3 %
ROE16.3 %
Face Value 1.00
PEG Ratio10.76

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for ERIS Lifesciences Ltd

Competitors of ERIS Lifesciences Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of ERIS Lifesciences Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales330310278349360332306399461423403467505
Expenses205203184223220210209269309286284297324
Operating Profit1251079512714012297129151137119170181
OPM %38%35%34%36%39%37%32%32%33%32%30%36%36%
Other Income2326758352113
Interest001111177391716
Depreciation11111115151718232930354142
Profit before tax11699851171311098510112110776112126
Tax %7%9%19%9%9%8%6%8%1%6%19%17%3%
Net Profit108906810711810180931191006194122
EPS in Rs7.936.645.037.868.717.415.916.968.857.494.816.989.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2743935095465977508569821,0741,2121,3471,6851,861
Expenses2153074144274254805336377027818581,1461,216
Operating Profit598695118172269322345372431489539645
OPM %21%22%19%22%29%36%38%35%35%36%36%32%35%
Other Income1197325263112922910
Interest11000111232242661
Depreciation3351620232636504365117164
Profit before tax558398109154270312317331394442405430
Tax %33%30%28%18%13%9%6%8%11%10%8%8%
Net Profit37587189135247295291297355406374379
EPS in Rs2,686.554,232.735,121.456,489.459,714.1817.9521.3921.1521.8426.1629.8828.1028.41
Dividend Payout %0%0%0%0%63%0%0%0%13%21%20%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)56.76%22.41%25.35%51.69%82.96%19.43%-1.36%2.06%19.53%14.37%-7.88%
Change in YoY Net Profit Growth (%)0.00%-34.34%2.94%26.33%31.28%-63.53%-20.79%3.42%17.47%-5.16%-22.25%

ERIS Lifesciences Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:15%
3 Years:18%
TTM:39%
Compounded Profit Growth
10 Years:19%
5 Years:6%
3 Years:3%
TTM:-8%
Stock Price CAGR
10 Years:%
5 Years:26%
3 Years:26%
1 Year:57%
Return on Equity
10 Years:25%
5 Years:20%
3 Years:19%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.140.140.140.14141414141414141414
Reserves1061762662995538481,1371,2831,5631,8952,1822,5732,758
Borrowings3110137717607848772,7812,735
Other Liabilities639491981241701752052022333371,3751,516
Total Liabilities1722713573976921,4081,5021,5021,7852,2263,4106,7427,022
Fixed Assets277572712327717618758549182,5684,3285,295
CWIP0000003422722207
Investments478416719030336535678294520371679
Other Assets981121191361572713835446367617832,3791,641
Total Assets1722713573976921,4081,5021,5021,7852,2263,4106,7427,022

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +389090131200235223271375378292486
Cash from Investing Activity +-36-83-92-44-184-590-5123-323-320-975-1,828
Cash from Financing Activity +-3-20-84-24363-221-335-82-456881,380
Net Cash Flow-15-24-88-360-3014538

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow59.0083.0094.00117.00172.00268.00-55.00169.00372.00424.00405.00-338.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days151616162428315342446377
Inventory Days214166223178195178196148145166136182
Days Payable10913814292134247200213157166129258
Cash Conversion Cycle120439710284-4028-123044700
Working Capital Days31715923-13-175964769283
ROCE %98%64%47%53%60%34%26%25%27%25%17%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.68%52.66%52.66%52.30%52.29%52.70%52.86%52.86%54.91%54.90%54.90%54.88%
FIIs13.60%13.34%13.31%15.35%15.39%15.50%14.86%13.78%13.20%13.13%14.27%14.59%
DIIs9.94%10.37%10.50%10.66%10.69%9.95%10.02%10.73%14.52%14.55%15.63%16.23%
Public23.78%23.62%23.52%21.69%21.63%21.85%22.27%22.63%17.37%17.41%15.20%14.30%
No. of Shareholders49,83354,22357,06151,63948,05546,74645,93144,16942,24546,49651,75344,176

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan5,098,7131.89438.23512,0002024-11-24895.84%
UTI Flexi Cap Fund2,573,0670.91221.16512,0002024-11-24402.55%
Franklin India Smaller Companies Fund1,710,9001.52147.05512,0002024-11-24234.16%
Aditya Birla Sun Life Equity Hybrid 95 Fund1,368,0301.7117.58512,0002024-11-24167.19%
UTI Value Fund1,029,1261.1988.45512,0002024-11-24101%
HSBC Midcap Fund962,5801.0382.73512,0002024-11-2488%
HDFC Large and Mid Cap Fund - Regular Plan675,0000.4958.02512,0002024-11-2431.84%
UTI Mid Cap Fund591,6120.5850.85512,0002024-11-2415.55%
Tata ELSS Tax Saver Fund512,0001.2744.01512,0002024-11-240%
UTI Dividend Yield Fund450,0001.2638.68512,0002024-11-24-12.11%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)28.8228.1029.8926.1621.61
Diluted EPS (Rs.)28.7928.0729.8826.1421.59
Cash EPS (Rs.)42.6136.1234.6129.3225.54
Book Value[Excl.RevalReserv]/Share (Rs.)190.11163.30140.35116.1095.47
Book Value[Incl.RevalReserv]/Share (Rs.)190.11163.30140.35116.1095.47
Revenue From Operations / Share (Rs.)147.70123.9299.1089.2579.10
PBDIT / Share (Rs.)51.3640.2937.6032.3528.26
PBIT / Share (Rs.)37.9431.6832.8429.1924.56
PBT / Share (Rs.)31.7029.7632.5329.0524.40
Net Profit / Share (Rs.)29.1927.5129.8526.1621.84
NP After MI And SOA / Share (Rs.)28.8228.1029.8826.1621.84
PBDIT Margin (%)34.7732.5137.9336.2435.73
PBIT Margin (%)25.6825.5633.1332.7031.05
PBT Margin (%)21.4624.0132.8232.5530.85
Net Profit Margin (%)19.7622.2030.1229.3027.60
NP After MI And SOA Margin (%)19.5022.6730.1429.3027.60
Return on Networth / Equity (%)15.1517.4021.2822.5222.87
Return on Capital Employeed (%)11.4213.3621.5323.7624.03
Return On Assets (%)5.5610.4217.8719.3519.10
Long Term Debt / Equity (X)0.250.290.020.000.00
Total Debt / Equity (X)1.060.370.020.000.00
Asset Turnover Ratio (%)0.370.520.610.670.67
Current Ratio (X)0.901.733.142.802.91
Quick Ratio (X)0.831.432.552.232.49
Inventory Turnover Ratio (X)1.111.261.311.481.04
Dividend Payout Ratio (NP) (%)0.0026.1520.1021.0213.14
Dividend Payout Ratio (CP) (%)0.0020.0117.3418.7511.23
Earning Retention Ratio (%)0.0073.8579.9078.9886.86
Cash Earning Retention Ratio (%)0.0079.9982.6681.2588.77
Interest Coverage Ratio (X)8.2420.94123.26243.78177.51
Interest Coverage Ratio (Post Tax) (X)5.6815.3098.87198.08138.14
Enterprise Value (Cr.)13413.398575.569359.518168.964936.17
EV / Net Operating Revenue (X)6.685.096.956.744.60
EV / EBITDA (X)19.2015.6518.3118.6012.86
MarketCap / Net Operating Revenue (X)5.704.626.956.774.66
Retention Ratios (%)0.0073.8479.8978.9786.85
Price / BV (X)4.423.544.915.213.86
Price / Net Operating Revenue (X)5.704.626.956.774.66
EarningsYield0.030.040.040.040.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ERIS Lifesciences Ltd as of November 27, 2024 is: 1,970.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 27, 2024, ERIS Lifesciences Ltd is Undervalued by 33.51% compared to the current share price 1,476.00

Intrinsic Value of ERIS Lifesciences Ltd as of November 27, 2024 is: 2,077.01

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 27, 2024, ERIS Lifesciences Ltd is Undervalued by 40.72% compared to the current share price 1,476.00

Last 5 Year EPS CAGR: 5.40%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 40.58%, which is a positive sign.
  2. The company has higher reserves (1,203.00 cr) compared to borrowings (541.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (377.85 cr) and profit (261.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 47.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in ERIS Lifesciences Ltd:
    1. Net Profit Margin: 19.76%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.42% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.15% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.68
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.83
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 58.1 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Eris Lifesciences Ltd. is a Public Limited Listed company incorporated on 25/01/2007 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24232GJ2007PLC049867 and registration number is 049867. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 1215.73 Cr. and Equity Capital is Rs. 13.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsShivarth Ambit, Plot No. 142/2, Ramdas Road, Off SBR, Ahmedabad Gujarat 380054complianceofficer@erislifesciences.com
http://www.eris.co.in
Management
NamePosition Held
Mr. Amit BakshiChairperson & Managing Director
Mr. Krishnakumar VaidyanathanCOO & Executive Director
Mr. Inderjeet Singh NegiExecutive Director
Mr. Kaushal ShahExecutive Director
Mr. Rajeev DalalIndependent Director
Mr. Sujesh VasudevanIndependent Director
Ms. Kalpana UnadkatIndependent Director
Mr. Prashant GuptaIndependent Director

FAQ

What is the latest intrinsic value of ERIS Lifesciences Ltd?

The latest intrinsic value of ERIS Lifesciences Ltd as on 27 November 2024 is ₹1970.58, which is 33.51% higher than the current market price of ₹1,476.00.

What is the Market Cap of ERIS Lifesciences Ltd?

The Market Cap of ERIS Lifesciences Ltd is 20,180 Cr..

What is the current Stock Price of ERIS Lifesciences Ltd as on 27 November 2024?

The current stock price of ERIS Lifesciences Ltd as on 27 November 2024 is 1,476.

What is the High / Low of ERIS Lifesciences Ltd stocks in FY 2024?

In FY 2024, the High / Low of ERIS Lifesciences Ltd stocks is 1,522/809.

What is the Stock P/E of ERIS Lifesciences Ltd?

The Stock P/E of ERIS Lifesciences Ltd is 58.1.

What is the Book Value of ERIS Lifesciences Ltd?

The Book Value of ERIS Lifesciences Ltd is 204.

What is the Dividend Yield of ERIS Lifesciences Ltd?

The Dividend Yield of ERIS Lifesciences Ltd is 0.00 %.

What is the ROCE of ERIS Lifesciences Ltd?

The ROCE of ERIS Lifesciences Ltd is 11.3 %.

What is the ROE of ERIS Lifesciences Ltd?

The ROE of ERIS Lifesciences Ltd is 16.3 %.

What is the Face Value of ERIS Lifesciences Ltd?

The Face Value of ERIS Lifesciences Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ERIS Lifesciences Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE