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

Strengths

• 5-year revenue CAGR of 19.01% and latest profit growth of 30.95% show strong, consistent growth.
• Piotroski F-Score of 8/9 reflects good financial health and operational discipline.
• Free cash flow of ₹987 Cr provides a solid cushion for reinvestment or debt repayment.
• Promoter holding of 54.85% aligns management interests with minority shareholders.
• Altman Z-Score of 3.08 indicates a low near-term bankruptcy risk.

Concerns

• P/E of 42.42 and P/B of 6.76 leave very little margin of safety versus Graham Number of ₹383.67.
• Debt-to-equity of 0.77 and ROCE of 12.22% suggest moderate but not exceptional capital efficiency.
• Dividend yield of only 0.54% means investors are not compensated while waiting for growth.
• EV/EBITDA of 176.27 appears extremely expensive on an underlying earnings basis.

AI Analysis

Eris Lifescience is the kind of company I would study twice, but buy only at the right price. It has grown revenue at 19% annually over five years, and latest profit jumped 31% on 12% sales growth. That tells me operating leverage is real. A Piotroski score of 8/9 suggests a sound financial skeleton, and free cash flow of ₹987 Cr gives it room to reinvest or reduce debt. Yet I cannot ignore the price. At ₹1,392.80, the P/E is 42 times trailing earnings, and P/B is 6.8 times book value. Graham’s number, based on earnings and book value, is only ₹383.67, implying a very negative margin of safety. The promoter holding of 54.85% is reassuring, but debt-to-equity of 0.77 is not pristine, and ROCE at 12.22% is moderate. The dividend yield of 0.54% means patient shareholders are not being paid to wait. I admire growth, but I buy when a good business is available with a margin of safety. Here the market is pricing perfection. The DCF says ₹3,813.71, but I always treat such intrinsic values with humility; my margin of safety must come from the price itself. The stock is 24% below its 52-week high, but value is not the same as a falling price. For a retail investor, I would say this is a well-run business with growth, but the entry price must offer more cushion. In Graham's words, price is what you pay; value is what you get. The company's value is growing, but today's price already pays for much of that growth.

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