Buy Divi S Laboratories, target price Rs 4750: IIFL Securities
IIFL Securities has a buy recommendation for Divi's Laboratories, with a target price of Rs 4,750 against the current market price of Rs 4,657.95. The brokerage firm believes that the company's strong performance in the CDMO segment and its focus on high-value products will drive growth in the future. IIFL Securities also expects the company to benefit from the increasing demand for pharmaceutical products globally.
About Divi S Laboratories:
Divi's Laboratories is a leading Indian pharmaceutical company listed on the National Stock Exchange (NSE). It is a vertically integrated manufacturer of active pharmaceutical ingredients (APIs), intermediates, and finished dosage forms. The company's core focus is on the development, manufacturing, and marketing of APIs for the generic pharmaceutical industry. Divi's has a strong global presence, with operations in India, the United States, and Europe. It supplies APIs to a wide range of pharmaceutical companies worldwide, including major multinational corporations. The company is known for its high-quality products, strong R&D capabilities, and competitive pricing.
52 Week Price Trend:
Divi's Laboratories, a leading Indian pharmaceutical company, has witnessed a significant increase in its share price, currently trading at Rs 4657.95. This reflects a substantial appreciation of 14.6% from its 52-week high of Rs 4074.4. However, the company's share price has also experienced volatility, reaching a 52-week low of Rs 2730 during the same period. The company's strong financial performance, driven by its diverse product portfolio and robust export markets, has supported its share price growth. Investors may consider the company's fundamentals, growth prospects, and overall market conditions before making investment decisions.
Stratzy's MOST Analysis:
DIVISLAB's exceptional AAA rating from Stratzy's MOST Framework signifies its strong fundamentals across all four pillars: Management, Outlook, Safety, and Trend. This rating indicates that DIVISLAB has low fundamental risks, suggesting a well-managed company with a positive outlook, solid safety measures, and a favorable industry trend. Investors can have confidence in DIVISLAB's financial stability and long-term growth prospects based on this comprehensive evaluation.
Company's Fundamentals:
Divi's Laboratories (NSE: DIVISLAB) is a reputable company in the pharmaceutical industry. Its current Stock PE (Price-to-Earnings) ratio of 68.67 indicates that investors are paying around 68.67 times the company's annual earnings per share. The PB Ratio (Price-to-Book) of 7.49 suggests that the market value of Divi's Laboratories' shares is approximately 7.49 times its book value, implying a premium valuation. However, the company's Dividend Yield of 0.84% indicates a modest dividend payout to shareholders relative to its stock price, suggesting that investors may prioritize capital appreciation over dividend income.
Fundamental and Technical information provided in this blog were last updated on 05 Jul, 2024
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