ScoreWhy is ERIS Lifesciences Ltd ?
1
High Management Efficiency with a high ROCE of 16.70%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.32 times
3
Poor long term growth as Operating profit has grown by an annual rate 18.11% of over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CF(Y) Highest at Rs 1,065.01 Cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.82 times
- NET SALES(Q) Highest at Rs 792.41 cr
5
With ROCE of 14.2, it has a Expensive valuation with a 4.4 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.40%, its profits have risen by 19.3% ; the PEG ratio of the company is 2.7
6
High Institutional Holdings at 26.57%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Returns over the last 3 years
- Along with generating 6.40% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ERIS Lifescience should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ERIS Lifescience for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ERIS Lifescience
-19.5%
0.19
32.85%
Sensex
-4.95%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.89%
EBIT Growth (5y)
16.75%
EBIT to Interest (avg)
26.10
Debt to EBITDA (avg)
1.80
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.56
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
28.45%
Pledged Shares
16.92%
Institutional Holding
26.75%
ROCE (avg)
16.01%
ROE (avg)
16.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
34
Price to Book Value
5.09
EV to EBIT
26.35
EV to EBITDA
19.77
EV to Capital Employed
3.58
EV to Sales
7.08
PEG Ratio
0.41
Dividend Yield
0.50%
ROCE (Latest)
13.57%
ROE (Latest)
16.20%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.60 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.00 times
PBT LESS OI(Q)
At Rs 157.18 cr has Grown at 29.99%
PAT(Q)
Highest at Rs 281.61 cr.
EPS(Q)
Highest at Rs 20.33
-4What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 7.13 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 67.30 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.58 times
Loading Valuation Snapshot...
Here's what is working for ERIS Lifescience
Profit After Tax (PAT) - Quarterly
At Rs 281.61 cr has Grown at 200.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.00 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.60 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 157.18 cr has Grown at 29.99%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 281.61 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 20.33
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for ERIS Lifescience
Inventory Turnover Ratio- Half Yearly
Lowest at 7.13 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 67.30 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 4.58 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
