Citi has initiated a ‘Buy’ rating on Divis Laboratories with a target price of ₹6,400, representing a 15% upside from the current market price of ₹5,555.55. The brokerage highlights Divis Lab’s strong positioning in the global pharmaceutical supply chain and its growth prospects.
Divis has secured its place in GLP-1 APIs, which Citi estimates could be a $800 million-plus revenue opportunity by CY30. The company is likely to be a key beneficiary of the supply chain diversification trend, as innovators place greater confidence in its capabilities.
Citi also notes that Divis is well placed to ride the diversification trend, adding to its strengths in the Custom Synthesis (CS) business. However, failure to scale up in the CS segment remains a key risk. Despite this, Citi considers Divis Lab a preferred pick in the Indian pharma sector, given its long-term growth prospects and strategic initiatives.
Disclaimer: This information is for informational purposes only and should not be considered as investment advice.
