Divi’s Laboratories shares were trading 0.21% lower at ₹6,129.30 today, hoping for a more optimistic outlook for the company’s growth. This comes after the drugmaker recently exited from the Nifty 50 index, but some analysts are seeing renewed potential in the company’s pipeline and market position.
Much of this renewed growth outlook revolves around Divi’s opportunity in the GLP-1 API (Glucagon-Like Peptide-1 Active Pharmaceutical Ingredients) segment. GLP-1 APIs are crucial in treatments for type 2 diabetes and obesity, regulating blood sugar levels and enhancing insulin secretion. This emerging pharmaceutical segment presents a significant revenue opportunity for Divi’s Laboratories as global innovators look to de-risk supply chains.
Brokerage firm Citi recently re-initiated coverage of Divi’s Labs with a ‘buy’ rating, citing the company’s secured position in the GLP-1 API market. Citi estimates this could bring over $800 million in revenue potential by 2030 for Divi’s, solidifying its place in the global pharmaceutical supply chain.
Though the stock has seen some downward pressure in recent months, analysts are warming up to the company’s growth potential in the long term, especially with its presence in the critical GLP-1 API space.
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