HSBC has reiterated its Buy rating on Divi’s Laboratories with a target price of ₹7,800, citing strong margin performance in Q3.
HSBC noted that while Q3 revenue was broadly in line with expectations, margins surprised positively, aided by a favourable product mix. A higher share of custom synthesis (CS) in the revenue mix supported gross margin expansion during the quarter.
The brokerage highlighted strong demand momentum in the peptide segment, which is driving optimism for the custom synthesis outlook. Execution of three dedicated projects is seen as critical for the next phase of growth.
HSBC believes sustained demand in high-value segments and improved product mix could continue to support margin resilience, even amid quarterly volatility typical of B2B pharmaceutical businesses.
Disclaimer: The views expressed above are those of HSBC and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.
