At a Glance
In a pharma world full of generics, Eris Lifesciences built its house on branded formulations. It’s profitable, niche, and clean… but after ₹1,500 crore in acquisitions and capex, its profit has barely moved. High PE, shrinking return ratios, and rising debt say:“Houston, we have a prescription problem.”
🧬 1. Company Background: Pharma with Personality
- Eris Lifesciences isn’t your average copy-paste generic factory. It focuses onchronic lifestyle diseases— diabetes, cardiology, CNS, etc.
- Its entire portfolio is domestic-branded, doctor-pushed, and non-tender.
- Founded in 2007, it’s theyoungest company in India’s Top 20 pharma firms.
- It became public in 2017, and since then has added several acquisitions:
- Strides India’s domestic biz
- Oaknet Healthcare
- Dr. Reddy’s 9 dermatology brands
All in all, it’s a consolidator of aging portfolios with high MR presence. Think of it as a brand-collector with
an M&A addiction.
đź“Š 2. Financials: A 5-Year Stalemate
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Sales (â‚ą Cr) | 1,074 | 1,212 | 1,347 | 1,685 | 2,009 | 2,894 |
| EBITDA (â‚ą Cr) | 372 | 431 | 489 | 539 | 677 | 1,017 |
| Net Profit (â‚ą Cr) | 297 | 355 | 406 | 374 | 397 | 375 |
| Operating Margin | 35% | 36% | 36% | 32% | 34% | 35% |
| ROCE (%) | 25% | 27% | 25% | 17% | 11% | 12% |
🎯TTM PAT: ₹375 Cr— almost same as FY21 despite huge growth in topline.
💣Borrowingswent from ₹84 Cr in FY22 → ₹2,478 Cr in FY25💣Depreciationtripled (₹117 Cr → ₹315 Cr) due to capex💣Interest costexploded from ₹26 Cr to ₹231 Cr
💉 3. The Problem: PE Is 69, But Growth Isn’t
Let’s decode this:
- Eris trades at aP/E of ~69(as of â‚ą1,780 stock price).
- That would make sense if PAT was growing 30%+.
- But Eris’5-year PAT CAGR =
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