Divi's Laboratories Ltd. share price target

Divis Lab Total revenues are up by 15.8% YoY to Rs 9.6 bn lower than our expectation of Rs 10 bn for the quarter. Operating margins stood at 39% in line with our estimate of 38.2% on account of lower overheads.

Outlook and valuation: While earnings were higher than we expected, H1 performance is almost in line with our FY16 expectations. Hence, we have maintained our estimates for FY16/17 and continue to value the company at Rs 1045 (22x FY17 earnings), implying 9%...

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...

Divi's Lab Total revenues are up by 25.8% YoY to Rs 8.1 bn higher than our expectation of Rs 7.7 bn for the quarter. Operating margins stood at 37.1% lower than our estimate of 39.1% on account of lower gross margins due to product mix. Net Profit was up by 44.8% YoY to Rs 2,432 mn (higher than our estimates of Rs 2,123 mn) aided by higher other income and lower depreciation.

Divi's Q1FY16 operating performance was just in line with our estimates with 26%/32% growth in sales/adjusted profit. Going ahead, the management expects to maintainsteadygrowthledbyprocessimprovementintheexistinggenericmolecules...

ff Divi's has reiterated its sales guidance at 15-20% and 37-38% margins for FY16E. Any new launches or approvals will add incrementally to the growth. Revenues of Nutraceuticals are guided at Rs2.2bn in FY16E, implying traction ahead. ff DSN SEZ contributed Rs2bn in 1Q as capacity utilization scaled up at 90%+,...

finetuned our FY16/FY17 EPS estimates to Rs 77.8/92.4, 2.9%/2.4% higher than before. We now value the company at Rs 1,940, 21x FY17 EPS, vs. Rs 1,900 earlier. Due to the limited upside potential (5%), we retain our NEUTRAL rating. The company's 80%+...

Divi's Lab Total revenues are up by 10.3% YoY to Rs 8.2 bn lower than our expectation of Rs 8.8 bn during the quarter. Operating margins stood at 38.6% higher than our estimate of 34.9% on account of lower raw material cost.

Divis Labs Total revenues are up by 14.8% YoY to Rs7.9 bn against our expectation of Rs8.3 bn during the quarter. Operating margins were at 36.3% lower than our estimate of 39.3% due to higher raw material, staff and other cost. Net Profit was up by 0.7% to Rs2,206 mn ( lower than our estimates of Rs2,420 mn)

Divi's is well-positioned in the Contract/Custom Research and Manufacturing Services (CRAMS) space, given its strong relationships with innovators, thus with presence...