Motilal Oswal Initiates Buy On Midcap Pharma Stock, Sees 15% Potential Upside

Leading broking firm Motilal Oswal reiterate Buy on Eris Lifesciences Ltd., a midcap Pharma sector firm. The brokerage assigns a target price of Rs. 720/share on the stock, claiming an upside of 15% from its current level. The company is engaged in the business of manufacturing and marketing of pharmaceutical products. It has a market capitalisation of Rs. 8,555.86 crore.

On track to improve profitability of inorganic opportunities

According to Motilal Oswal, Eris Lifesciences (ERIS) delivered in-line 4QFY23, led by steady growth in base business and improved performance of Oaknet as well as insulin franchise. Besides, addition of complimentary brands in medical/cosmetic dermatology from Glenmark Pharma and Dr. Reddy's Lab is expected to enhance derma offerings going forward.

Buy for a atrget price of Rs. 720/share

Motilal Oswa, said, "We retain our earnings estimates for FY24/FY25 and value ERIS at 19x 12M forward earnings to arrive at our TP of INR720. We remain positive on ERIS aided by its: a) robust portfolio offerings in antidiabetes, cardiovascular and dermatology segments through organic as well as inorganic route, b) field force addition, which would expand coverage of specialist/consulting physicians, and c) improving operating leverage. Reiterate BUY."

Stock Overview

The stock's last traded share price on NSE is Rs. 629.15/share, down 1.18% from its previous close. The stock traded its 52 week high at Rs. 749.80/share and 52 week low at Rs. 551.30/share, respectively.

In the past week, it declined 1.55%, whereas it jumped 1,.36% in 1 month. It declined 10.36% in 1 year. In 3 years it jumped 31.79%. It has fallen 19.37% in 5 years.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.