On July 7, 2023, Eris Lifesciences shares mounted 4% in the early trade, a day after domestic institutional investor HDFC Mutual Fund picked up a 1% stake in the pharmaceutical company.

On July 6, HDFC Mutual Fund bought 13.5 lakh equity shares, or a 0.99% stake, in the company over open market transactions at an average of Rs 697 a share, amounting to Rs 94.09 crore.

HDFC MF probably picked up the stake sold by investor Rakesh Shah. The individual investor traded 27 lakh shares at the same price. Following the stake sale, Shah’s shareholding tumbled to 9.55% from 11.53% at the end of the March quarter.

At 9:35 am, Eris Lifesciences traded 2.64% higher at Rs 724.65 on the NSE.

Eris Lifesciences accomplished many acquisitions in recent quarters, including the dermatology segment, which has improved its growth prospects. Prabhudas Lilladher expects margins to improve as revenue scales up from current acquisitions operating at sub-optimal productivity.

Prabhudas Lilladher has shown a “buy’ call on the stock, with a price target of Rs 780.

Motilal Oswal Financial Services also remains positive as it believes the accumulation of complimentary medical and cosmetic dermatology brands from Glenmark Pharma and Dr Reddy’s Lab enhances its derma offerings. The brokerage also rolled out a “buy” reference for the stock with a price target of Rs 720.