HSBC has upgraded Divi’s Laboratories to a Buy rating and raised its target price sharply to ₹7,900 from ₹5,020, citing a robust medium-term growth outlook driven by high-potential product categories such as tirzepatide, other peptides, and contrast media. The revised target implies a 15% upside from the current market price of ₹6,868.50.
The brokerage sees a “long runway of growth” for Divi’s, with an estimated revenue potential of approximately USD 450 million from peptides and USD 260 million from contrast media by 2030. HSBC noted that these two segments alone could significantly enhance the company’s earnings profile over the next five years.
Factoring in this opportunity, HSBC has baked in a compounded annual growth rate (CAGR) of around 23% for Divi’s earnings per share (EPS) over FY25–28E. The upgrade reflects growing confidence in Divi’s capabilities in high-value custom synthesis and API manufacturing for complex therapies.
The brokerage believes Divi’s is well-positioned to benefit from the increasing outsourcing of complex molecules and expects these tailwinds to strengthen the company’s margin profile in the medium term.
Disclaimer: The views expressed above are those of HSBC and do not constitute investment advice. This article is for informational purposes only.
