Divi's Labs Surpasses Q4 Expectations, Yet Valuations Remain a Concern By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2024
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Source: Investing.com
- Divi’s Laboratories Financial Performance: Divi’s Laboratories exceeded expectations with an 18% YoY revenue increase and a 50% rise in EBITDA, driven by Custom Synthesis segment growth.
- Investment Opportunities for Divi’s: Divi’s anticipates double-digit growth from commercializing Kakinada Phase 1, market share gains, investments in new areas, upcoming patent expirations, and unique technology projects.
- Goldman Sachs Analysis: Goldman Sachs raised EPS estimates for FY25 to FY27, increased the target price to INR 4,020, but maintains a Neutral rating due to valuation concerns.
- Market Outlook for Divi’s Segments: Custom Synthesis segment grew significantly, while Generic API segment faced pricing pressures despite volume gains. The Kakinada project is progressing well.
- Investor Considerations: Investors should be cautious of current valuations, as the average analysts' target price is lower than the current market price. Divi’s plans significant capital expenditure for FY25.
Analyst Views on DIVI
Wall Street analysts forecast DIVI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIVI is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
