Prabhudas Lilladher's research report on Divi's Laboratories
Divi’s Laboratories (DIVI) registered healthy revenue growth however profitability was impacted due to higher COGS and overheads along with change in product mix. We believe efforts on backward integration, debottlenecking and utility upgradation will continue to yield better margins. Divi’s remains preferred play on Indian CRAMS and API given its strong execution track record. However, in near term growth is likely to remain muted given high base.
At CMP, stock is trading at 33x P/E on FY24E. Our FY23 and FY24E stands marginally reduced by 3%. We recommend our ‘Accumulate’ rating with revised TP of Rs 4,140/share (Rs4,300 earlier).
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