Deven Choksey report on Divis Laboratories
Consolidated revenue increased by 16.1% YoY (+12.7% QoQ) to INR 27,150 Mn, slightly above our estimates (+3.5%), led by stronger-than-expected traction in the Custom Synthesis (CS) segment, while the Generic API business remained soft due to ongoing pricing pressure across key molecules. The sequential rebound was driven by improved execution in CS projects, stable volumes in core generics, and healthy momentum in nutraceuticals.
Outlook
We have rolled forward our valuation to Sept’27 estimates. We value Divis Laboratories at 56.0x Sept’27 EPS, implying a target price of INR 6,795. We reiterate our “ACCUMULATE” rating on the stock.
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