Notes from AR iro Eris Lifesciences for FY 21-22 –

1. Company remains focussed on brand building. Their top 15 mother brands clock in 80 pc of the company revenues. Company grew in double digits despite IPM growth of 1.3 pc ( only – due pandemic hitting acute therapies ). The same was due to company’s focus on chronic therapies. Field force productivity improved 15 pc during the year.

2. Company has exiting organic and inorganic growth opportunities ahead –
   (a) Rich pipeline of new product launches led by patent expiries in cardio-metabolic and allied segments.
   (b) Expanding coverage of specialists and consulting physicians.
   (c) Company’s push for early detection and better life cycle management through patient care initiatives.
   (d) Tech investments to improve sales force productivity.
   (e) Company is on the look out for high-return in-licensing and acquisition opportunities.

3. Currently, ERIS is ranked 22 in IPM and is the only pure play India focussed company in the listed space. Revenues have grown 6X in last 10 yrs and 2X in last 5 yrs. Company has maintained ROIC > 30 pc for last 12 Yrs. Chronic focussed portfolio contributes 91 pc of sales with 7 pc of sales coming from NLEM drugs. Company is ranked no 3 among diabetologists and no 4 among cardiologists. Company’s top 10 products are ranked among top 5 in their respective categories. Two of company’s brands rank no 1 in their respective categories – Gluxit ( Dapagliflozin ) and Zomelis ( Vildagliptin ). Another dominant brand from company’s stable is Renerve ( nutraceutical ) is clocking annual sales of 135 cr.

4. For FY 21-22, Cardio metabolic segment ( 60 pc of company revenue ) grew by 9.7 pc vs Mkt growth of 9.3 pc. Nutraceuticals ( 20 pc of business ) grew by 15 pc vs Mkt growth of 8.6 pc. Gross margins reduced from 84 pc to 80 pc due to increased investments behind new launches.

5. Therapy wise revenue breakdown –

Oral diabetes care – 32 pc
Cardiac care – 26 pc
Vitamins, Minerals,Nutrients – 20 pc
CNS – 7 pc
GI – 6 pc
Gynae – 4 pc
Pain – 2 pc
Others – 3 pc

6. Manufacturing infra – Manufacturing facility at Guwahati accounted for 74 pc of all products sold in FY 21. Also eligible for tax benefits till FY 24 and GST subsidies till FY 25.

Disc : invested, biased.

As it includes data usage via 5G i think nothing maybe possible without government regulations…some companies spending crores in auction and another able to make use of similar tech (be it sankhya or handset makers etc) without shelling out anything to government may not be feasible until gov pitches in when this tech becomes viable…

Ameya ( @finstor85 ) has very informative thread on this … read below

Just a query…Generally everybody says that in the long run, Share Price should follow the earnings. If that is so, Muthoot Net profit CAGR for 10 years is 16% while its share price CAGR for 10 years is 24 %…Now since the business is stable and secure, may be 2% difference is understandable but why 8% difference??
similarly for Pidilite, 10 years Profit CAGR is 14% while 10 years CAGR for share price is 30%…Why so much anamoly? or I am missing something…same is the case with Nestle.
In muthoot case, is it reverting to mean? And if so, does it mean that even pidilite and nestle will also revert to mean in near future?