ERIS Lifescience (ERIS)

FairStock Score: 34/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Whenever I look at a pharmaceutical company, I ask whether it has durable brands and pricing power, but I can only judge from the numbers in front of me. ERIS at ₹1358.50 and ₹18,827 Cr market cap is not cheap: P/E 28.98, P/B 4.76, EV/EBITDA 176.27. The Graham Number is only ₹383.67, leaving a margin of safety of -254.03%, meaning the market pays a huge premium to asset-based value. As Graham would say, that is speculation unless future earnings are exceptional. The company does show some quality: ROE 15.13%, ROCE 12.22%, debt/equity 0.61, free cash flow ₹987 Cr, Piotroski F-Score 8/9 and Altman Z-Score 3.08. Promoter holding 54.85% aligns interests. However, current growth is poor: sales fell 21.78%, profit fell 51.70%, latest quarter sales ₹807 Cr and net profit ₹109 Cr. A 5-year revenue CAGR of 21.93% looks good, but the recent trend is sharply negative. The FairStock Score of 34/100 flags risk. DCF intrinsic value ₹3813.71 is above price, but it conflicts with Graham Number and EV/EBITDA; I would not rely on one optimistic model. Dividend yield 1.04% is thin. In Buffett terms, this may be a decent business, but at this price I see no margin of safety. The latest quarter still produced ₹109 Cr net profit, so it is not distressed, but the direction matters. I would wait for sales and profit recovery and valuation normalization before calling it a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer