Citi has reiterated its “Buy” rating on Divi’s Laboratories with a target price of ₹6,850, emphasizing the company’s strong growth pipeline despite delays in the BioSecure Act. The legislation, initially expected in 2024, is now likely to pass next year, which could further bolster Divi’s partnerships in the biopharma segment.
Citi highlighted Divi’s robust product pipeline, including high-growth areas such as contrast media and GLP-1 projects, which are expected to drive revenues in the medium term. While street estimates predict a sharp decline in Entresto sales, Citi believes the actual impact may be significantly milder, providing additional upside.
The brokerage also pointed to potential buying opportunities during market corrections, given the company’s solid fundamentals and growth trajectory. With biopharma partnerships expanding globally and an increasing focus on high-margin projects, Divi’s Laboratories is well-positioned to maintain its leadership in the API and specialty chemical segments.
