⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ERIS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ERIS | Market Cap | 19,214 Cr. | Current Price | 1,385 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 68.2 | Book Value | 203 ₹ | Dividend Yield | 0.53 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,498 ₹ | DMA 200 | 1,540 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 100.0 Cr. |
| RSI | 37.5 | MACD | -49.2 | Volume | 14,653 | Avg Vol 1Wk | 74,281 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.57 | Debt to equity | 0.79 |
| 52w Index | 35.4 % | Qtr Profit Var | 432 % | EPS | 20.7 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue growth: Strong quarterly PAT improvement (150 Cr vs 100 Cr), but sustainability remains uncertain.
- Profit margins: EPS at 20.7 ₹, yet ROE at 3.02 % and ROCE at 6.86 % highlight weak efficiency.
- Debt ratios: Debt-to-equity at 0.79, relatively high compared to peers, adds financial risk.
- Cash flows: Profitability supports cash generation, but leverage may constrain flexibility.
- Return metrics: Low ROE and ROCE indicate poor capital utilization.
💹 Valuation Indicators
- P/E ratio: 68.2, far above industry average (29.0), suggests overvaluation.
- P/B ratio: Current Price / Book Value ≈ 6.8, expensive relative to assets.
- PEG ratio: -1.57, not meaningful due to distorted growth expectations.
- Intrinsic value: Valuation stretched, not justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical sector with focus on branded generics and specialty therapies.
- Strong presence in chronic therapies like diabetes and cardiovascular drugs.
- Competitive advantage through niche focus, but debt levels and weak return ratios limit strength.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near 1,100–1,200 ₹ levels, closer to 52-week low support.
- Long-term holding: Cautious; suitable for investors seeking pharma exposure but valuation is premium and returns are weak.
Positive
- Quarterly PAT surged 432 % YoY.
- EPS at 20.7 ₹ reflects profitability.
- DII holdings increased (+0.95 %).
Limitation
- ROE (3.02 %) and ROCE (6.86 %) are weak.
- P/E ratio (68.2) far above industry average (29.0).
- Debt-to-equity ratio at 0.79 is relatively high.
Company Negative News
- FII holdings decreased (-0.36 %).
- Technical indicators weak: RSI at 37.5, MACD negative.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Positive News
- Quarterly PAT improved significantly (150 Cr vs 100 Cr).
- Strong presence in chronic therapy segments ensures demand stability.
Industry
- Pharmaceutical industry resilient, driven by healthcare demand and exports.
- Industry PE at 29.0, highlighting ERIS’s premium valuation.
Conclusion
- ERIS shows profitability growth but weak efficiency metrics and high debt.
- Valuation is stretched compared to industry peers, limiting upside potential.
- Entry advisable only near lower support levels; long-term holding requires caution unless return ratios improve and debt reduces.
Would you like me to extend this into a peer comparison HTML snapshot against companies like Torrent Pharma, Alkem Labs, and Glenmark to highlight ERIS’s relative valuation and strengths?