Hold Divi's Laboratories; target of Rs 2945: ICICI Direct

ICICI Direct's research report on Divi's Laboratories

Divi’s is engaged in manufacturing generic APIs and intermediates, custom synthesis (CS) of active ingredients and advanced intermediates for pharma MNCs, other speciality chemicals like Carotenoids and complex compounds like peptides and Nucleotide revenues. In CS, the company maintains a strong relationship with global big pharma players while in generics it enjoys significant market share in products like Naproxen, Dextromethorphan and Gabapentin among others • Divi’s is fully backward integrated in products with high market share. The management intends to follow suit in other products.

Outlook

Maintain HOLD as we keep tab on future custom synthesis ex-Covid opportunities and execution besides steady generics traction. Valued at Rs 2945 i.e. 31x FY25E EPS of Rs 95.

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Divi's Laboratories - 06 -02 - 2023 - ic