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Life Insurance Corporation of India

Moneycontrol

Budget 2022

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Associate Partners

Kotak Mutual Fund
Pharmeasy
Indiabulls
SBI
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Buy Divis Laboratories; target of Rs 5711: Hem Securities

Hem Securities is bullish on Divis Laboratories has recommended buy rating on the stock with a target price of Rs 5711 in its research report dated November 30, 2021.

December 01, 2021 / 02:58 PM IST
 
 
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Hem Securities report on Divis Laboratories


Total Revenue stood at Rs 1987.51 Cr for Q2FY22, registering a growth of 13.6% YoY. Profit for the period increased 16.7% YoY to Rs. 606.46 Cr. Operating Margins slightly weak at 51.9% in Q2FY22 against 52.5% in corresponding period last year. Cash flow from Operations stood at Rs. 557.22 Cr in H1FY22. The company completed debottlenecking and expansion of plants which got delayed due to the pandemic. However, rising raw material prices and logistic cost restricted the margins at current levels.



Outlook


Given its strong moat, healthy financials and leadership in segment, we have a positive view on Divi’s Laboratories Ltd. Hence, we recommend our investors to BUY the scrip with target of Rs 5,711 from long term investment perspective. At CMP, the scrip is valued at P/E multiple of 61.3x on TTM EPS of Rs. 80.3.

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first published: Dec 1, 2021 02:58 pm
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