Showing posts with label IPO ANALYSIS : Eris Lifesciences Limited. Show all posts
Showing posts with label IPO ANALYSIS : Eris Lifesciences Limited. Show all posts

Tuesday, June 13, 2017

IPO ANALYSIS : Eris Lifesciences Limited - Invest



Issue opens / closes on
16-06 / 20-06-2017
Issue size
2.88 cr equity shares plus OFS 2.23 cr shares
Face Value
Rs 1
Price band
Rs 600-603
Promoters
A I Bakshi / others
Business
Mfrs of pharmaceutical products
Registrar
LinkIntime
Listings
Bse, Nse
BRLM
Axis Capital, Citigroup and Credit Suisse Securities

Business:

Eris Lifesciences manufactures pharmaceutical products in select therapeutic areas within the chronic and acute categories, such as: cardiovascular; anti-diabetics; vitamins; gastroenterology; and anti-infectives.

The offer:

OFS of  28,875,000 Equity Shares.

Objects of the offer:

To achieve the benefits of listing the Equity Shares on the Stock Exchanges


Financials   ( Rs in crores)


31-03-2017
31-03-2016
31-03-2015
Revenues
707
609
551
Net profit
243
138
83
Equity (fv rs1)
13.75
0.14##
0.14##
EPS
17.64
10.03
6.06

(## fv Rs 10)

Valuation and recommendations:

The company has achieved a CAGR of 22% in revenues, between Fiscals 2013 and 2017 has outperformed overall Industry growth, which is at of 12%, during the same period. In the chronic pharmaceutical products category,  the company is one  of the fastest growing enterprise. The average RONW in the last 3 years is above 43%. Since the entire IPO is an OFS, there won't be any expansion of capital post IPO.

For fy 18 the company is likely to report EPS in excess of Rs 20. The offer is made around 30PE, which is reasonable.


Invest for listing gains and as well as for long term appreciation.