Despite strong custom synthesis growth and better-than-expected quarterly results, analysts caution that high valuations could restrict near-term gains for Divi's Laboratories
Divis stock gained 2% in Monday's intra-day deals. Reports suggest the company is well positioned to benefit from emerging trends across both API and CDMO domains through innovation and capex.
Divi's Laboratories reported a 14 per cent year-on-year jump in revenue at ₹2,410 crore in Q1FY26, compared to ₹2,118 crore in the year-ago period
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Drug firm Divi's Laboratories on Monday said its profit after tax (PAT) increased 65 per cent to Rs 589 crore for the December quarter, on the back of robust sales across markets. The company had reported a profit after tax (PAT) of Rs 358 crore for the October-December quarter of last fiscal. Revenue from operations rose to Rs 2,319 crore in the third quarter as against Rs 1,855 crore in the year-ago period, Divi's Laboratories said in a regulatory filing. The drug firm noted a part of the Kakinada Project (Unit-III) commenced commercial operations from January 1, 2025. The rest of Kakinada project is being implemented and is expected to be operational in about six months, it added. "We have capitalised assets of Rs 433 crore for the quarter and of Rs 557 crore for the nine-month period of the current fiscal year. Of this, capitalisation for Kakinada Project is Rs 418 crore during the 9-month period," the drug firm stated. The company said its board has approved the re-appointme
Its revenue from operations climbed 25 per cent to Rs 2,319 crore during the quarter, roughly in line with analysts' estimate of Rs 2,343 crore
The company delivered a strong revenue and operating performance in the March quarter
According to the brokerage, prices of APIs such as Paracetamol, Azithromycin, Montelukast, and Meropenem, have all declined in the range of 10-30 per cent over the last one year
As per an affidavit filed with the Election Commission of India, Rahul Gandhi's top stock holdings include Pidilite Industries, Bajaj Finance, Nestle, ITC, Hindustan Unilever and Tube Investments.
Motilal Oswal Research is factoring in 25 per cent net profit growth annually over the FY23-25 period adjusting for Covid-led business in FY23
Divi's Labs Q2 result: The revenue from operations, however, rose 3 per cent to Rs 1,909 crore in the period from Rs 1,855 crore last year
Revenue of the contract research and manufacturing services player was down 21 per cent y-o-y
Analysts' average price target of Rs 3,862, however, indicates significant upside. The near-term trend remains bearish
EBITDA margins declined 767 bps YoY to 33.5 per cent due to high energy and transport costs.
Valuations, too, are on the higher side, say brokerages
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Brokerages expect the company's net profits to grow by 30 per cent annually over FY20-23
According to Axis Securities, the small and midcaps are picking up steam and they should deliver solid returns in 2021 as economic uncertainties will reduce and volatility will decline
Divi's Laboratories, established in Hyderabad, is a pharmaceutical company with two manufacturing units
Niche capabilities and absence of regulatory overhangs are other key positives