Divi's Laboratories Ltd. crossed the Rs 3 lakh crore market capitalisation for the first time on Monday, November 9, as the stock continued its upward run after the company reported strong second-quarter earnings and received positive commentary from brokerages.
The stock was trading at Rs 11,442 on the NSE around 12:38 pm, up 3.11% from its previous close. This took the company's market capitalisation to Rs 3,06,934.77 crore.
Divi's Laboratories shares have risen 22.29% over the past month and 80.04% so far in 2026. The stock has also outperformed the Nifty 50 over the past year, gaining 71.58% against the index's return of 4.19%. Over three years, the stock has delivered a return of 226.47%, compared with 58.28% for the benchmark.
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Strong Earnings And CDMO Pipeline Support Growth
The rally follows a strong second quarter, with revenue rising 35% YoY to Rs 3,676 crore and net profit increasing 64% to Rs 1,127 crore. Ebitda grew 76% to Rs 1,566 crore, while the Ebitda margin expanded to 42.6% from 32.7%.
The management said work on three dedicated custom synthesis projects was progressing, with one nearing commercialisation and the other two expected to reach that stage over the next one to two quarters. The company is also handling around 60 to 70 projects, each at a different stage of development and qualification.
Management reiterated its double-digit growth outlook but did not raise its margin guidance despite the strong first-half performance.
Peptides, Capacity Expansion And Cost Efficiencies
Divi's is expanding its peptide manufacturing capabilities through several 3,000-litre solid-phase peptide synthesis lines. Management said its peptide business remains focused on innovation-led opportunities rather than generic peptides. It also highlighted backward integration through its Kakinada facility, which has helped improve manufacturing efficiencies.
The company continues to invest in manufacturing capacity, with management reiterating annual capital expenditure of around Rs 2,000 crore, plus or minus 20%.
Brokerages Positive; Valuations Remain A Concern
Goldman Sachs, Jefferies, and JPMorgan raised their target prices to Rs 11,700, Rs 12,550, and Rs 12,500, respectively, while retaining positive ratings. Kotak maintained its Sell rating and Rs 8,550 target, citing valuation concerns and Entresto exposure.
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