Eris Lifesciences Long Trade
- Yash Mehta
- Mar 22, 2021
- 2 min read
Updated: Mar 23, 2021
Eris Lifesciences a fundamentally good company giving an opportunity for short-term and long-term traders.
About Company:
Eris is a leading Indian branded formulations company with a strong presence in chronic and lifestyle therapies such as anti-diabetes, cardiology, nutrition and neuropsychiatry. Since its inception in 2007, Eris has demonstrated robust growth and is now ranked among the Top-20 Indian companies in the domestic branded pharmaceuticals market with annual revenues in excess of Rs.1000 crore.
Established a portfolio of 100+ mother brands across core lifestyle-related therapies and marketing divisions cater to over 80,000 specialists and super-specialist doctors across India. Eris continue to lead in prescription rank among specialists, with a #3 rank among Diabetologists, Neurologists and Gastroenterologists and #4 rank among Cardiologists, within our covered market.
Let's look at the charts:
Daily Chart
It gave breakout and currently retesting its old resistance zone which became demand zone for the stock. On 19th March 2021, there was a good volume spike near that region that indicates removal of weaker hands who were holding the stocks. At CMP: 578 it can be added for positional trade. Stop loss: 470 Short-term target: 800 and Time horizon: 4 months.
Weekly Chart:
On weekly chart it is forming rounded bottom pattern which is a bullish sign for positional trader. It can be bought as per our previous plan and if it gives breakout above 850 then target of 1450+ is expected in the long term.
Let's look at the fundamentals:
Market Capitalization: 7800 Crores P/E: 23.38 (undervalued)
Industry P/E: 37.01
EPS: 24.73
Debt to Equity: 0 (debt free company)
Price to Book Value: 6.04
Income Statement:
Average Operating Profit Margin is more than 30%. Net Profit and EPS is increasing YoY.
Sales growth is more than 10% and ROE is more than 20% YoY.
Balance Sheet:
Company is debt free and borrowings is 0. Reserves is increasing YoY.
ROCE
Return on capital employed is more than 25% YoY.
Shareholding Pattern:
In last quarters, promotors have increased their stake marginally. FII's have increased their stake from 8.59% to 11.3% in last two years.
Overall, the company looks good for a trader and an investor. But please keep stop losses intact while initiating the trade.
Disclaimer: I am not SEBI register advisors, so please consult your financial advisors before taking action based on any facts or data mentioned in this blog.
Reference of Images and Data:
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