tag:blogger.com,1999:blog-8629364998048667702.post1897538014912213682..comments2024-03-29T12:52:44.932+05:30Comments on Equity, Economics And Energy: ERIS Lifesciences IPO: A Quick TakeGurpreet singhhttp://www.blogger.com/profile/10779546706508152515noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8629364998048667702.post-92021699985813629352017-06-22T23:46:04.000+05:302017-06-22T23:46:04.000+05:30Dear Sir, never studied it...also i generally don&...Dear Sir, never studied it...also i generally don't invest in commodity stocks unless there is something special like strong entry barrier.Gurpreet singhhttps://www.blogger.com/profile/10779546706508152515noreply@blogger.comtag:blogger.com,1999:blog-8629364998048667702.post-59405460945764155402017-06-22T07:19:40.873+05:302017-06-22T07:19:40.873+05:30Sir, your views on Indian Metals & Ferro Alloy...Sir, your views on Indian Metals & Ferro Alloys [IMFA]psvhttps://www.blogger.com/profile/13038331785689917015noreply@blogger.comtag:blogger.com,1999:blog-8629364998048667702.post-24039738599448793512017-06-20T14:06:45.038+05:302017-06-20T14:06:45.038+05:30----- Forwarded message ----------
From: Naman Jai...----- Forwarded message ----------<br />From: Naman Jain <br />Date: 20 June 2017 at 11:57<br />Subject: Eris Life sciences : Some points<br />To: Gurpreet Singh <br /><br /><br />1.The drug maker, figures among the top six companies in diabetes and hypertension segments and has a revenue of Rs 800 crore and slightly over Rs 200 crore in net profit .<br /><br />2.Eris claims one of the best financial metrics, including return on capital employed and EBITDA , and the second best field staff productivity ratio after Sun Pharmaceuticals,<br /><br /><br />3. In less than a decade, Bakshi built an enterprise valued at over $1 billion, riding on the changing disease profile in a prospering economy, also making strides in healthcare services.<br /><br /> India's chronic treatment market has outpaced the larger acute therapies in recent years, making Eris the youngest among the top 25 companies in the branded formulations market.<br /><br /> Bakshi's business model centered on a portfolio of brands in untapped super-specialty niches.The company's 25 brands account for 92% of the annual turnover, according to IMS-ORG data, which runs against the narrative of Indian pharma companies operating a lengthy list of brands and a long tail.<br /><br />http://economictimes.indiatimes.com/markets/ipos/fpos/pharma-salesmans-company-eris-lifesciences-eyes-rs-10000-crore-tag-in-ipo/articleshow/54774756.cms<br /><br />4. A foot inside a doctor’s clinic is tougher than ever before. But if a drug maker can identify holes in the prescription, and fill them, it can hit a sweet spot. Add to that Eris’ sound execution: The annual per person productivity of its field-force at Rs 25 lakh beats the industry average of Rs 70,000 to Rs 20 lakh. It has grown 145 percent in the last four years, and is among the top 35 firms for branded formulations. In 2008-2009, it was ranked 29 and 224 by IMS ORG in cardiology and ENT respectively. By June 2012, it was No. 1 in both categories.<br /><br /><br />5. Eris Lifesciences entered this space with a strategy to identify gaps in super specialties in select categories, such as cardiology, gastroenterology, pediatrics, orthopedics—in the process creating new market segments. For instance, Vitamin D. New research shows it can keep liver and thyroid disorders, and even cancer, at bay. The Vitamin D market was Rs 18 to Rs 20 crore three years ago. In 2012, it added Rs 94 crore to Eris’ revenue of Rs 296 crore. The company has launched diagnostics for Vitamin D deficiency, and has eight such products in its portfolio, including suppositories.<br /><br />http://www.forbesindia.com/article/12-hidden-gems/eris-lifes-sciences-drug-money/34025/1<br /><br /><br />6. All the shares offered in Eris Lifesciences IPO will be sold by existing shareholders through an Offer for Sale (OFS). As a result, the company will not get any money from the IPO.<br /><br />7.Rarely one comes across business delivering 49% RoCE and 45% RoE, which is definitely unheard of in the pharma sector. Since Eris earns zero revenue from exports, it is immune from US FDA issues plaguing Indian pharma currently. This is a big distinguishing factor vis-a-vis peers. Moreover, it enjoys tax break (under Income Tax Act, which will continue post GST) till FY24 on its sole manufacturing facility at Guwahati, Assam, which accounts for 78% of sales. Balance 22% of sales is outsourced to contract manufacturers. Hence, effective tax rate for company was very low at 8.3% in FY17 and 12.7% in FY16.<br /><br />8. As on 31-3-17, on net worth of Rs. 540 crore, company has a debt free balance sheet. Surplus cash and equivalents are Rs. 261 crore, translating into cash per share of Rs. 19.<br />Gurpreet singhhttps://www.blogger.com/profile/10779546706508152515noreply@blogger.com