Hold Divi’s Laboratories; target of Rs 1040: Sharekhan

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Sharekhan's research report on Divi’s Laboratories

Divi’s Laboratories (Divis) at Vishakhapatnam (which is under import alert 66-40) was re-inspected by the USFDA between 11-19 th September 2017. As per the management clarification, all previous observations have been completely resolved. However, on completion of inspection, Divis received a Form 483 citing six observations (procedural in nature), which the company shall respond to, in the stipulated time period.

Outlook

Taking a cue from the recent development, we feel the focus shall be on FY2019 and FY2020 earnings which shall be driven by capacity expansion and pending approvals. We roll-over our target multiple to Sep 2019 earnings and arrive at a price target of Rs 1040. Given the limited upside (due to sharp run-up in past two weeks) we maintain our Hold recommendation on the stock. Lifting of import alert will be the key trigger to watch out for and will lead to further re-rating; stock is still trading at a discount to its historical multiple.
For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More