Divi's Laboratories Ltd. share price target

While Q3 EBITDA was inline with estimate, PAT of Rs 2.68bn was 10% below our estimate due to higher taxes. Revenue growth was muted at 13% YoY (9M was 14% YoY, 10% in cc terms). Divi'sguided for 10- 15% cc revenue growth for FY17/18 vs.15% earlier, given delay in adding capacities (Vizagand Kakina..

Revenue decreased by 2.95% to Rs. 973.44 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it grew by 13.37% when compared with Q3FY16.

ICICI Securities Ltd | Retail Equity Research Revenue grew 4% YoY to | 1005 crore (I-direct estimate: | 1090 crore) mainly due to 35% YoY growth in Carotenoids business to...

Divis Lab Net revenues are up 3.4% YoY to Rs 10.30 bn lower than our expectation of Rs 11.5 bn for the quarter due to higher base impact, product mix and better performance in Carotenoids. The Operating margins stood at 29% (lower than our estimate of 32.1%) as against 38.7% in Q2FY16 on account of onetime bonus on completion of 25 years and higher other expenses including forex loss and ex-gratia to research. Net Profit was down by 24% YoY to Rs 2232 mn (lower than our estimates of Rs 2,759 mn).

ICICI Securities Ltd | Retail Equity Research Revenues grew 24.6% YoY to | 1008.1 crore (I-direct estimate: | 932.6 crore) due to ~26% growth in generic business to | 501 crore and ~22% growth in custom synthesis (CS) business to | 443 crore EBITDA margins increased 273 bps YoY to 40% (I-direct estimate: 37%) mainly due to a better product mix. EBITDA increased ~34% YoY to | 403.8 crore (I-direct estimate: | 345.1 crore) Net profit witnessed YoY increase of ~23% to | 301.8 crore (I-direct...

Top takeaways from Q1FY17: Delivered strong Q1 operating performance with 17% beat in earnings supported by 310bps positive surprise in margins and 6% beat in revenues. Guides for delayed commercialisation of its new projects –at Kakinada SEZ as well as at Vizag – during late FY18. This could hurt the modelled sales growth of 19% in FY18. Divi’s board has approved a one?time ex?gratia of Rs 790mn for its employees on the occasion of its 25th anniversary and that would hurt FY17 margins by ~150bps. Phillip Capital maintain their Neutral rating with raised TP of Rs 1200 (vs. Rs 1190 earlier).

ICICI Securities Ltd | Retail Equity Research Revenues grew 34.1% YoY to | 1095 crore (I-direct estimate: | 963 crore). The generics business grew 47% to | 566 crore (I-direct...

8 Its proposed greenfield facility with an investment of Rs 5bn in the Kakinada SEZ got delayed as the company is yet get the final control of the targeted land. Divis is currentlyundergoingasettlementprocesswithvillagers(earlierownersoftheland)....

8 Delay in shipments both in generics as well as customsynthesis operation inorderto meet justintime supply policy of customers resulted in 9%/11% below expected revenues/PATinQ3.Q4toseespillovereffect....