Stock Market Today: Divi’s Laboratories’ share price gained 6% in the morning trade on Monday, May 19, post the announcement of Q4 results by the pharma company on Saturday. The company also announced a dividend of ₹30 a share.
Divi’s Laboratories Q4 Results
With a net profit of ₹662 crore, up 23% year-on-year (YoY), for Q4 FY25, Divi’s Laboratories marked a strong growth compared to ₹538 crore in the same period last year.
The quarter’s revenue from operations of ₹2,585 crore during the January-March 2025 period was up 12.2% from ₹2,303 crore in the same period last year.
EBITDA or earnings before interest, tax, depreciation and amortisation surged 21.2% YoY to ₹886 crore during the March 2025 quarter compared to ₹731 crore in the year-ago quarter.
Divi’s Laboratories: Analyst View
As per Jefferies India, Divi’s 4Q numbers were in line with estimates, with a largely balanced growth across generics, custom synthesis and nutraceuticals. Divi’s currently has several projects at different stages of development belonging to GLP1/2, GIP and small molecule, but does not target the generic semaglutide opportunity as it intends to focus on working with innovators, said Jefferies. The company maintains a ‘Hold’ rating amid near-term patent challenges and high valuation (51x times FY27 estimated earnings) with a price target of ₹6,200.
Motilal Oswal Financial Services maintained a ‘Neutral’ rating on Divi’s Laboratories shares with a price target of ₹6,540. MOFSL models a 25% earnings CAGR (compound annual growth rate) over FY25-27. It also assigns a 28% premium to its 10-year average 12-month forward price-to-earnings multiple of 39 times.
However, the current valuations (at 62 times FY26 estimated earnings and 50 times FY27 estimated earnings) provide limited upside, according to the brokerage. Hence, it reiterated a ‘Neutral’ rating on the Divi’s Laboratories shares.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
