Jefferies upgrades Divi’s Laboratories stock rating to Buy on custom synthesis growth

Published 25/08/2025, 08:16
Jefferies upgrades Divi’s Laboratories stock rating to Buy on custom synthesis growth

Investing.com - Jefferies upgraded Divi’s Laboratories Ltd (DIVI:IN) stock rating from Hold to Buy on Monday, while raising its price target to INR7,150.00 from INR6,750.00.

The upgrade comes as Divi’s custom synthesis segment, which represents 52% of the company’s sales, rebounded with 19% year-over-year growth in FY25 after experiencing volatility during FY22-24, according to Jefferies.

Jefferies expects the custom synthesis growth to continue at a 16% compound annual growth rate (CAGR) through FY28, supported by Sacubitril Valsartan, GLP-1 launches, China+1 tailwinds, and Big Pharma partnerships.

The research firm projects some near-term volatility in the custom synthesis segment but anticipates new launches in generics will lead to growth recovery for the company.

Jefferies forecasts Divi’s Laboratories will achieve 14% sales CAGR and 20% EBITDA CAGR from FY25 through FY28.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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