⚠ 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: 2.8
| Stock Code | ERIS | Market Cap | 18,041 Cr. | Current Price | 1,306 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 60.7 | Book Value | 203 ₹ | Dividend Yield | 0.56 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,400 ₹ | DMA 200 | 1,494 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 17.0 Cr. | PAT Prev Qtr | 150 Cr. |
| RSI | 39.4 | MACD | -26.8 | Volume | 75,965 | Avg Vol 1Wk | 1,01,530 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.40 | Debt to equity | 0.79 |
| 52w Index | 25.7 % | Qtr Profit Var | 853 % | EPS | 20.8 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Revenue growth: Weak, PAT collapsed to 17 Cr. from 150 Cr.
- Profit margins: EPS at 20.8 ₹, but ROE 3.02% and ROCE 6.86% show poor efficiency
- Debt ratios: Debt-to-equity at 0.79, relatively high compared to peers
- Cash flows: Volatile profitability raises concerns about sustainability
- Return metrics: ROE and ROCE well below industry averages
💹 Valuation Indicators
- P/E Ratio: 60.7, significantly above industry PE of 27.6, reflects overvaluation
- P/B Ratio: ~6.43 (1,306 ₹ / 203 ₹), high relative to fundamentals
- PEG Ratio: -1.40, distorted due to earnings volatility
- Intrinsic Value: Current price appears overvalued given weak returns
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical sector with focus on branded formulations
- Competitive advantage limited due to weak profitability and high leverage
- Industry demand supported by healthcare growth, but company-specific execution is weak
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 1,150–1,200 ₹ range if fundamentals improve
- Long-Term Holding: Not recommended until profitability stabilizes and debt reduces
✅ Positive
- DII holding increased (+0.95%)
- Dividend yield at 0.56% provides shareholder returns
- EPS at 20.8 ₹ indicates some earnings base despite volatility
⚠️ Limitation
- High debt-to-equity ratio (0.79)
- P/E ratio (60.7) well above industry average
- ROE and ROCE significantly below peers
📰 Company Negative News
- PAT collapsed to 17 Cr. from 150 Cr.
- FII holding decreased (-0.36%)
- Stock trading below DMA 50 (1,400 ₹) and DMA 200 (1,494 ₹), showing weak momentum
🌟 Company Positive News
- DII holding increased (+0.95%)
- Dividend yield at 0.56% provides shareholder returns
- RSI at 39.4 indicates mildly oversold conditions, potential for technical rebound
🏭 Industry
- Pharma industry PE at 27.6, ERIS trades at a steep premium
- Sector benefits from healthcare demand and innovation-driven growth
🔎 Conclusion
- ERIS shows weak fundamentals with declining profitability, high debt, and poor efficiency metrics
- Valuation is stretched compared to industry peers, limiting near-term upside
- Not suitable for long-term holding unless earnings stabilize; entry only near 1,150–1,200 ₹ with cautious optimism