Motilal Oswal has given Buy recommendation for Eris Lifesciences recommended buy rating on the stock with a target price of Rs 870 in its researc with a target price of Rs. 870 in its research report issued on May 05, 2022

Motilal Oswal’s research report on Eris Lifesciences

ERIS delivered an operationally inline 4QFY22. It ended the second consecutive year with earnings growth in the a healthy teens compared to stable earnings over FY18-20. The acquisition of Oaknet Healthcare (Oaknet) enables ERIS to add a Dermatology franchise, expand into the Cosmetology space, and improve synergy in the Women’s Healthcare segment. –

Outlook

We tweaked our FY23/FY24 EPS estimate by (3%)/2% to factor in: a) addition of the Oaknet business, b) scale-up in already launched products (Drolute, Xsulin, Zomelis, Gluxit) , c) strong pace of launches over the next 12-15 months, and d) upcoming promotional expenses. We continue to value ERIS at 22x 12-month forward earnings to arrive at a TP of INR870.

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