Divi's Labs delivered an in-line 2Q. Sales (up 15.9% yoy), margins (38.8%, up 230bps yoy) and profitability (Rs2.8bn, up 26.1% yoy) were in-line as Generic API and Custom Synthesis proffered ramp up. The company has reiterated its sales guidance at 15-20% and operating margins yoy at ~37-38% for FY16E in-line with our assumptions. With capacity expansion targeting higher volumes and sustenance of base business growth we believe that long-term outlook is encouraging, remaining undeterred by quarterly lumpiness. Besides, favorable currency could surprise us positively. However, backed...