Synopsis:
Divis Laboratories‘ share is in focus after leading brokerage HSBC has shown its bullish stance on the pharmaceutical company by raising its target price by a staggering 57 percent.
The shares of this pharmaceutical company came under the spotlight of investors after HSBC raised its target price by 57 percent, citing capacity expansion and revenue increase potential. In this article, we will dive deep into the details.
With a market capitalization of Rs 1,83,890 crores, the shares of Divis Laboratories Ltd are currently trading at Rs 6,927 per share, and have surged all the way to hit a 52-week high of Rs 7,071.50 per share. Over the past five years, the stock has delivered a return of 215 percent.
Hong Kong and Shanghai Banking Corporation (HSBC) assigned a Buy call on Divis Laboratories with a target price of Rs 7,900 per share, citing an upside potential of 15 percent from Monday’s closing price of Rs 6,888.50 per share.
This comes after HSBC had earlier assigned a target price of Rs 5,020 and now set a target of Rs 7,900 per share, which is a staggering jump of 57 percent from its earlier set price.
The brokerage changed its viewpoint mainly because it sees a long runway of growth for Divi’s Laboratories, led by tirzepatide, other peptides, and contrast media in the medium term. The brokerage has also estimated that Divis Lab will hit revenue of Rs 3,856 crore from peptides and around Rs 2,228 crore from contrast media by 2030.
In management commentary, Divis Lab had said that it would invest Rs 650 crore to Rs 700 crore in capacity expansion, which would help the company to increase its revenue massively. It is directed that the plant will be operational from January 2027.
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Financial Highlights
The company reported a revenue of Rs 9,360 crores in FY25, up by 19.33 percent, from its FY24 revenue of Rs 7,845 crores. It reported a net profit growth of 37 percent to Rs 2,191 crores in FY25 from Rs 1,600 crores in FY24.
Divi’s Laboratories Limited is a top Indian pharmaceutical firm that produces and markets generic active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals worldwide. It also offers custom synthesis and contract manufacturing services. Divi’s has a robust overseas presence, with exports to countries in North America, Europe, Asia, and others.
Written by Satyajeet Mukherjee
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