Jefferies has reiterated its ‘Hold’ rating on Divi’s Laboratories with a target price of Rs 6280, highlighting a mixed performance in the third quarter. The company’s Q3 revenue met expectations, while EBITDA exceeded estimates due to a favorable product mix. The custom synthesis segment continues to lead growth, while the generic (Gx) business rebounded despite ongoing pricing pressures.
Jefferies notes that although Gx pricing remains under strain, the impact was mitigated by higher volumes in the quarter. Looking ahead, the company remains optimistic about its prospects in the GLP-1 peptide space, but Jefferies points out that Divi’s will need to navigate high product concentration risks, particularly related to Sacubitril Valsartan in FY27. The brokerage suggests that diversification and new product pipelines will be critical for sustained growth.
