Buy Divis Laboratories target of Rs 2430: Sharekhan
Sharekhan’s research report on Divis Laboratories
Divis is well placed to capitalize on the opportunities in the API space. A strong run up in the API prices attributable to likely supply disruption from China due to outbreak of the Corona Virus is would substantially benefit API focused companies like Divis. Backward integration, aggressive capex plan incurred in the past and outsourcing opportunities would add to the topline and PAT growth for Divis. Further The company does not have pending regulatory hurdles which is a key positive and offers visibility for growth going ahead. We expect the sales and PAT to grow CAGR 20% and 24% respectively over FY2020 –FY2022.
We maintain Buy recommendation on Divis Laboratories (Divis) with a revised PT of Rs 2,430.
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