ERIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ERIS | Market Cap | 18,589 Cr. | Current Price | 1,342 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 73.2 | Book Value | 231 ₹ | Dividend Yield | 0.54 % | ROCE | 11.1 % |
| ROE | 8.89 % | Face Value | 1.00 ₹ | DMA 50 | 1,372 ₹ | DMA 200 | 1,449 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.04 % | PAT Qtr | -8.60 Cr. | PAT Prev Qtr | 17.0 Cr. |
| RSI | 52.3 | MACD | 6.01 | Volume | 7,00,870 | Avg Vol 1Wk | 6,10,609 |
| Low price | 1,200 ₹ | High price | 1,910 ₹ | PEG Ratio | -5.41 | Debt to equity | 0.66 |
| 52w Index | 19.9 % | Qtr Profit Var | -128 % | EPS | 17.6 ₹ | Industry PE | 30.5 |
📊 Financials: ERIS shows weak fundamentals currently. Quarterly PAT slipped into a loss of -8.6 Cr compared to a profit of 17 Cr earlier, reflecting significant margin pressure. ROCE at 11.1% and ROE at 8.89% are below industry standards. EPS stands at 17.6 ₹, but profitability is inconsistent. Debt-to-equity at 0.66 is relatively high compared to peers, raising concerns about leverage.
💰 Valuation: The stock trades at a P/E of 73.2, far above the industry average of 30.5, suggesting overvaluation. Book value is 231 ₹, with current price at 1,342 ₹, implying a P/B ratio of ~5.8. PEG ratio of -5.41 indicates poor growth-adjusted valuation. Intrinsic value appears lower than current levels, suggesting the stock is overpriced.
💊 Business Model & Health: ERIS operates in pharmaceuticals, focusing on branded formulations. While it has niche positioning and strong distribution, profitability challenges and high debt weaken its competitive advantage. Overall health is fragile due to negative earnings and stretched valuations.
📉 Entry Zone: RSI at 52.3 indicates neutral momentum. Support is near 1,200 ₹, resistance at 1,910 ₹. Entry should be cautious, ideally closer to 1,200–1,250 ₹ if valuations normalize. Long-term holding is risky unless profitability stabilizes and debt levels improve.
Positive
- 💊 [Market Presence](ca://s?q=ERIS_market_presence): Established brand in pharmaceuticals with niche focus.
- 📈 [Dividend Yield](ca://s?q=ERIS_dividend_yield): Offers a modest yield of 0.54%.
Limitation
- 📉 [Profitability](ca://s?q=ERIS_profitability): Negative PAT in the latest quarter.
- ⚠️ [Valuation](ca://s?q=ERIS_valuation): P/E of 73.2 is far above industry average.
- 💸 [Debt Levels](ca://s?q=ERIS_debt_levels): Debt-to-equity ratio of 0.66 is relatively high.
Company Negative News
- 📉 [Quarterly Loss](ca://s?q=ERIS_quarterly_loss): Reported -8.6 Cr PAT compared to profit earlier.
- 📊 [FII Outflow](ca://s?q=ERIS_FII_outflow): Foreign investors reduced holdings by -0.46%.
Company Positive News
- 📈 [DII Support](ca://s?q=ERIS_DII_support): Domestic institutions increased holdings slightly by 0.04%.
Industry
- 🏥 [Pharma Growth](ca://s?q=Indian_pharma_growth): Sector expanding with demand for branded generics and specialty drugs.
- 📊 [Industry PE](ca://s?q=Pharma_industry_PE): Sector average P/E is 30.5, much lower than ERIS’s valuation.
Conclusion
⚠️ ERIS currently reflects weak fundamentals, negative profitability, and inflated valuations. While it has niche presence in pharmaceuticals, high debt and poor earnings make it risky. Entry should be cautious near 1,200–1,250 ₹, and long-term holding is not advisable unless profitability stabilizes and valuations normalize.