Pharmaceuticals
Pharma - API & CRAMS
from 9,025 today
We turn BUYers on Divi's Laboratories as it pivots to the faster-growing peptides segment, supported by increased capex and a 26% earnings CAGR over FY26-29.
Revenues and EBITDA grew strongly in 1QFY27 driven by validation batches in Custom Synthesis, increasing backward integration, and operating leverage. We raise earnings by 8-15% and our target price to Rs11,700, retaining Divi's as our top India pharma pick.
Divis reported very strong Q1FY27 numbers, driven by custom synthesis segment growth and a richer mix, justifying a premium valuation. We retain our Buy rating with a target price of Rs. 9,574.
Divi's Lab delivered higher-than-estimated financial performance for 1QFY27, driven by strong traction in the custom synthesis business and margin expansion. Given the limited upside from current valuations, we reiterate our Neutral rating on the stock with a target price of INR7,720.
Divi's Lab delivered higher-than-estimated financial performance for 1QFY27 driven by strong traction in the custom synthesis business and margin expansion. Given the limited upside from current valuations, we reiterate our Neutral rating on the stock.
Divi’s Laboratories reported a strong Q1FY27 EBITDA growth of 72% YoY, beating estimates by 48% largely aided by the CS segment and currency tailwind. We maintain our 'Accumulate' rating with a revised target price of INR 8,600/share, expecting 25% EBITDA and PAT CAGR over FY26-28E.
Divi's Laboratories reported a strong quarter driven by custom synthesis outperformance, but we maintain our HOLD rating with a Target Price of Rs. 7,959 as the sharp run-up in the stock largely reflects the improving business outlook, limiting meaningful upside from current levels.
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