Sharekhan has given Buy recommendation for Divis Laboratories with a target price of Rs. 4450 in its research report issued on Aug 12, 2022
Sharekhan’s research report on Divis Laboratories
Divis Q1FY23 results were a mixed bag and reflected the higher operating costs while the lower tax rate resulted in a double-digit PAT growth and the results missed estimates. Established capabilities, backward integration, focus on quality, and benefits of scale coupled with major capacity expansion plans commencing, are the positives that could support growth. The management commentary points to healthy demand, well supported by capacity expansion plans, which would drive top-line growth for the company, but elevated cost pressures will weigh on the performance in the coming quarters.
We maintain a Buy recommendation on the stock of Divis’ Laboratories with a revised PT of Rs 4450.