Eris Lifesciences Ltd.
ISIN: INE406M01024 • Market Cap: ₹18,683 Cr
The 5-Pillar Quality Audit for Eris Lifesciences Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (35.3%), Return on Capital Employed (13.4%), and equity compounding (12.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.85 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (24.2%) and 3Y PAT CAGR (20.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 29.02 vs PEG of 1.32 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 54.1%, backed by 26.5% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 24.2%)
Revenue has expanded at 24.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 20.4%)
Net earnings have compounded at 20.4% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (26.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking ERIS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 76/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare ERIS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Eris Lifesciences Ltd. (ERIS)Current | 76/100 | ₹18,683 Cr | 29.02 | 13.4% | 0.85 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Eris Lifesciences Ltd.
Q:What is the 5-Pillar Fundamental Score for Eris Lifesciences Ltd. (ERIS)?
Eris Lifesciences Ltd. has a RupeeTools Fundamental Score of 76/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (74/100), Financial Health (70/100), Growth (86/100), Valuation (72/100), and Ownership Quality (78/100).
Q:Is ERIS fundamentally strong for long-term investment?
Yes, ERIS exhibits solid fundamental strength with a 76/100 score, driven by a return on equity of 12.3% and a debt-to-equity ratio of 0.85.
Q:Does ERIS pass the Coffee Can Investing filter?
No. ERIS does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ERIS compare against other Healthcare peers?
Within India's Healthcare sector, ERIS trades at a P/E of 29.02 and generates an ROCE of 13.4%. Compare its 5-Pillar score of 76/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.