Divi's Laboratories Ltd. share price target

Divi's Laboratories (DIVI) Q4FY25 EBITDA beat our estimates led by higher gross margin (62%; up 200 bps QoQ). We expect GMs to sustain, led by better product mix and stable raw material prices. Mgmt. suggested that moderation of raw material prices, increasing RFP's and commencement of some CDMO and contrast media contracts, will continue to aid revenues and margins. Our FY26E/FY27E EPS estimates broadly remain unchanged. We expect 22% EBITDA CAGR and 15% PAT CAGR over FY25-27E. At CMP, stock is trading at...

Divi’s Laboratories (DIVI) 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).

Q3 sales/EBITDA/PAT were 0.6%/7.5%/22.3% above our estimates. PAT was higher than estimated due to the adoption of the new tax regime

Divis Labs’ revenue for the quarter amounted to Rs. 2,238 crore, marking a 17% y-o-y increase and a 6% q-o-q rise, which was 4% above estimates.

DIVI reported healthy 2QFY25 earnings which was a beat on our estimates. Exports contributed 87% of sales and the US 71%

Divi’s Laboratories’ (Divi’s) Q1FY25 result was sub-par. Revenue traction was driven by custom synthesis (CS) (up ~46% YoY), while generics grew 1.5% YoY due to double-digit price erosion in key products like Naproxen, Gabapentin and Dexamethasone.

DIVI delivered a strong quarter with all round beat. EBITDA/PAT beat Bloomberg consensus estimate by 20% each

LICI: Solid quarter; valuations overdone cut to HOLD. ALKEM: Good quarter; cut to SELL on stretched valuations. Monthly Chartbook: Fiscal consolidation to hold key. PWGR: In-line quarter, FY25 capex hiked; maintain BUY. TATACONS: Strong run continues. DIVI: Healthy margin recovery, heady valuations. TPW: Dull quarter; high valuations maintain HOLD. ESCORTS: Weakness persists - maintain SELL. TRCL: Tepid quarter, high capex overhang retain SELL. Metals & Mining: Ferrous read-across: Steel recovery in CY24 - ArcelorMittal

Q3 revenue grew 9% YoY on 25% rise in custom synthesis business; API and nutraceuticals stayed soft