Divi’s Labs: Green chemistry provides an edge

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Divi’s Labs has a strong focus on ‘green chemistry’, helping it to reduce wastage through technology adoption, leading to better profitability and relationship with global clients

Divi’s Labs: Green chemistry provides an edge

PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook

While Divi’s Labs (CMP: Rs 4,875; Market Cap: Rs 1,29,407 crore) is known for economies of scale and vertical integration, resulting in cost leadership over time, there is an undercurrent theme which investors should focus on. The company has a strong focus on ‘green chemistry’, helping it to reduce wastage through technology adoption, leading to better profitability and relationship with global clients. In addition and even more important, green chemistry helps to contain impurity levels. The product range of interest is sartans,…