The brokerage has a 'Hold' rating, citing the fourth quarter was ahead of estimates as CS sales surged by 47% on-year.The foreign brokerage in a note said Divi's EBITDA margin also rose to a multi-quarter high in consequence.
The CS business benefited from Q4 seasonality and two commercial contracts.According to Jefferies, the company is looking like it is set to spring back to its growth path.
The brokerage sees the company's growth patch factored into the stock, which it said is trading at 41 times financial year 2026 PE (price-earnings) valuation.InCred has upgraded Divi's Laboratories to 'Add' from 'Reduce', and also increased its price target on the stock to4,707 from3,333 per share earlier.InCred said the pharma company's fourth quarter earnings beat expectations, with a substancial rise in enquiries in the CCS business.
The brokerage sees visibility improving in the CCS business.It has also upped its FY25 and FY26 earnings per share (EPS) estimates by 12% and 13%, respectively.Shares of Divi's Laboratories Ltd. rose 2.62% to hit a 52-week high level of4,230.45 in Monday's trade.
At this price, it has gained nearly 10% on a year-to-date (YTD) basis.
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Divi's Laboratories March quarter results managed to impress a couple of analysts, who upped their price targets on the stock, after the pharma player delivered a strong beat on earnings, fueled by a revival in the Custom Synthesis (CS) business.EBITDA margins crossed 30% after five quarters on the back of growth in the CS business, which led to a better product mix than earlier quarters.Following its earnings announcement, global brokerage firm Jefferies has raised its target price on the stock to4,050 per share. The brokerage has a 'Hold' rating, citing the fourth quarter was ahead of estimates as CS sales surged by 47% on-year.The foreign brokerage in a note said Divi's EBITDA margin also rose to a multi-quarter high in consequence. The CS business benefited from Q4 seasonality and two commercial contracts.According to Jefferies, the company is looking like it is set to spring back to its growth path. The brokerage sees the company's growth patch factored into the stock, which it said is trading at 41 times financial year 2026 PE (price-earnings) valuation.InCred has upgraded Divi's Laboratories to 'Add' from 'Reduce', and also increased its price target on the stock to4,707 from3,333 per share earlier.InCred said the pharma company's fourth quarter earnings beat expectations, with a substancial rise in enquiries in the CCS business. The brokerage sees visibility improving in the CCS business.It has also upped its FY25 and FY26 earnings per share (EPS) estimates by 12% and 13%, respectively.Shares of Divi's Laboratories Ltd. rose 2.62% to hit a 52-week high level of4,230.45 in Monday's trade. At this price, it has gained nearly 10% on a year-to-date (YTD) basis.
