Divi's Laboratories Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for DIVISLAB, BSE:532488 Divi's Laboratories Ltd.

Divi's Laboratories Ltd.

04 Feb 2019

6010.00

-0.05%

Divi's Labs (3QFY19): Valuations unsupportive. Maintain SELL

Sell: Divi's Laboratories Ltd.

Target

HDFC Securities

Maintain SELL with a TP of Rs 1,395 (22x Dec-20E EPS). This is Divis Labs (DIVI) second consecutive quarter with Rs 12bn plus revenues, up from a quarterly run-rate of Rs 9-10bn earlier. Although the management maintains that this is driven by normalization of orders post import alert clearance, there is an uncanny coincidence that the business has gained traction in a quarter where Valsartan API prices soared, and the Rupee fell ~10%.

Number of FII/FPI investors decreased from 897 to 868 in Dec 2025 qtr

Divi's Laboratories Ltd.

04 Feb 2019

6010.00

-0.05%

Divi Lab: Revenues and margins outperform

Hold: Divi's Laboratories Ltd.

Recommendation Target

Karvy

Revenues and margins outperform: Divis Lab's Net revenues increased by 29.4% YoY to Rs 13.4 bn, which is higher than our estimates of Rs 10.4 bn for the quarter.

Divi's Laboratories .. has an average target of 6270.00 from 6 brokers.

Divi's Laboratories Ltd.

02 Feb 2019

6010.00

-0.05%

Strong revenue growth, better operating leverage drives earnings

Neutral: Divi's Laboratories Ltd.

Target

Motilal Oswal

DIVIs reported strong revenue growth of ~29% YoY to INR13.4b v/s our est. of INR12.2b, partly due to low base of last year. Gross margin expanded ~360bp YoY (+110bp QoQ) to 64.2%. EBITDA margin improved significantly by ~600bp YoY to 39% due to improvement in gross margin and better operating leverage. Employee cost 2 February 2019 increased at a lower rate of 19% YoY to INR1.4b, and other expenses remained stable at INR1.6b. Revenue growth coupled with margin expansion led to ~53% YoY growth in EBITDA to INR5.2b v/s our est.

Divi's Laboratories Ltd. is trading below all available SMAs

Divi's Laboratories Ltd.

10 Nov 2018

6010.00

-0.05%

Divi Lab: Revenues and margins outperform

Buy: Divi's Laboratories Ltd.

Recommendation Target

Karvy

Revenues and margins outperform: Divis Labs Net revenues increased by 44.4% YoY to Rs 12.9 bn, which ishigher than our estimates of Rs 10.2 bn for the quarter. The Operatingmargins were at 40% in Q2FY19 (much higher than our estimate of 34.7%) asagainst 31% in Q2FY18 on account of better gross margin and lowerexpenditure.

Divi's Laboratories Ltd. is trading below all available SMAs

Divi's Laboratories Ltd.

31 Oct 2018

6010.00

-0.05%

Divi's Labs (2QFY19): Terrific, but unsustainable. Downgrade to SELL

Sell: Divi's Laboratories Ltd.

Recommendation Target

HDFC Securities

Downgrade to SELL with a TP of Rs 1,345 (22x Sep-20E EPS). Divis Labs (DIVI) reported a blowout quarter, benefitting from a favorable base, currency impact, one time API opportunities and a belated surge of orders post import alert clearance. Revenues grew up 44/29% YoY/QoQ to Rs 12.85bn, EBITDA margin at 40% expanded 887bps, while PAT jumped 92% YoY to Rs 3.98bn. Margin expansion was led by currency benefits and oplev.

Divi's Laboratories Ltd. is trading below all available SMAs

Divi's Laboratories Ltd.

31 Oct 2018

6010.00

-0.05%

Divi's Laboratories

Buy: Divi's Laboratories Ltd.

Target

ICICI Securities Limited

Revenues grew 44.3% YoY to | 1285 crore against I-direct estimate of | 1012.4 crore led by 1) capacity addition, 2) advantage of supply constraints from China and 3) currency tailwinds EBITDA margins rose 887 bps to 40.0% (I-direct estimate: 36.0%) mainly due to currency tailwinds, operational leverage. EBITDA grew 85.5% YoY to | 514.1 crore (I-direct estimate: | 364.5 crore) Net profit grew 92.3% to | 397.7 crore (I-direct estimate: | 275.1...

Divi's Laboratories .. has an average target of 6270.00 from 6 brokers.

Divi's Laboratories Ltd.

29 Oct 2018

6010.00

-0.05%

Strong beat on earnings

Neutral: Divi's Laboratories Ltd.

Target

Motilal Oswal

significantly by ~44% YoY to INR12.9b (v/s est. The strong YoY growth was led by (a) normalization of operations post resolution of warning letter, and (b) opportunities due to slowdown in supplies from Chinese competitors. Superior product mix led gross margins to expand by 29 October 2018 ~330bp YoY (+150bp QoQ) to 63%. In addition, improved operating leverage with higher capacity utilization led EBITDA margin to expand ~890bp YoY to 40%. This is the highest margin recorded by the company in the last 18 quarters. Revenue growth coupled with margin expansion led to ~86% YoY growth in EBITDA to INR5.1b (v/s est. Other income saw forex gains of INR528m against INR106m YoY. PAT stood at INR4b up ~92% YoY at INR8.7b (+66% YoY) and PAT at INR6.

Divi's Laboratories .. has an average target of 6270.00 from 6 brokers.

Divi's Laboratories Ltd.

18 Sep 2018

6010.00

-0.05%

Divis Labs

Buy: Divi's Laboratories Ltd.

Target

Sharekhan

Rupee reset pushes up estimates: In the past five months, rupee has depreciated by 10-11%, benefitting exporting pharma companies in terms of better sales realisation and profitability. Hence, we have revised our INR assumptions to Rs. 69 vs. earlier Rs. 67 (for FY2020E and FY2021E), leading to upgrade of 2-3% each in our sales and earnings estimates (FY2020E and...

Divi's Laboratories .. has an average target of 6270.00 from 6 brokers.

Divi's Laboratories Ltd.

06 Aug 2018

6010.00

-0.05%

Divi's Labs (1QFY19): Low visibility on growth. Maintain NEUTRAL

Neutral: Divi's Laboratories Ltd.

Target

HDFC Securities

Maintain NEUTRAL rating, with a revised TP of Rs 1,150 (22x FY20E). 1QFY19 is a seasonally weak quarter for Divis Lab, but on a lower base of last year which was affected by import alert, the YoY expectations were higher. The top-line came in at Rs 10bn (in-line), up ~21%YoY (down 9% QoQ). Strong growth in the generics (+26% YoY) and nutraceuticals businesses (+61%YoY) boosted the top-line.

Number of FII/FPI investors decreased from 897 to 868 in Dec 2025 qtr

Divi's Laboratories Ltd.

06 Aug 2018

6010.00

-0.05%

Divi's Laboratories

Buy: Divi's Laboratories Ltd.

Recommendation Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Revenues grew 21.2% YoY to | 995.3 crore (I-direct estimate: | 1151.2 crore) mainly due to lower base of import alert in Q1FY18, currency tailwinds and strong growth in the carotenoid segment EBITDA margins improved 554 bps to 35.4% (I-direct estimate: 36%) mainly due to strong gross margins, lower other expenditure. EBITDA grew 43.7% YoY to | 351.9 crore (I-direct estimate: | 414.4 crore) Net profit grew 50.8% to | 266.2 crore (I-direct estimate: | 308.1...

Number of FII/FPI investors decreased from 897 to 868 in Dec 2025 qtr

Is Divi's Laboratories Ltd. worth buying?

756 Votes:

Buy 78.17%

Sell 14.95%

Hold 6.88%

RESEARCH REPORTS

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