Divi's Labs Q3 Review: Custom Synthesis Drives Earnings; Generics Stable — Motilal Oswal Retains 'Neutral'

Divi's Labs has been fortifying its growth drivers in custom synthesis through its focus on subsegments, such as peptides and contrast media. It is also adding newer molecules in the generics space..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Divi’s Laboratories Ltd. delivered in-line revenue. However, it reported better-than-expected Ebitda/PAT led by a better product mix and lower tax rate (due to the shift to a new tax regime). The custom synthesis business continues to improve for eight quarters now. The generics business has been gradually witnessing stability on a QoQ basis. We broadly maintain our estimates for FY25/FY26/FY27. We value Divi's at 50 times 12 months forward earnings to arrive at our target price of Rs 6,200. We expect a 25% earnings CAGR over FY25-27, driven by improved capacity utilization at Kakinada and healthy traction across key segments..Click on the attachment to read the full report:.Divi’s Laboratories Q3 Results: Profit Rises 64%, Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Divi's Labs Q3 Review: Custom Synthesis Drives Earnings; Generics Stable — Motilal Oswal Retains 'Neutral'

Divi's current valuation provides limited upside from current levels, adds the brokerage.

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