Divi’s Labs hits 52-week high as analysts pile in after healthy Q1
The stock has now gained over 25 per cent in the past month alone and 33 per cent year-to-date, significantly outperforming the Nifty Next 50 index, of which it is a constituent.
Divi’s Laboratories achieved a 52-week peak price on Monday, with shares gaining nearly 5% to trade at ₹8,500 on the NSE. The surge followed a strong first-quarter (Q1) performance revealed during a board meeting on Saturday. As of 11:29 am, the stock was valued at ₹8,454.50, marking a rise of ₹398.50, or 4.95%, with buy orders outpacing sell orders by a ratio of 56:44.
Trading volume had already exceeded ₹886 crore, lifting the company’s market capitalisation to more than ₹2.24 lakh crore. In the past month, the stock has soared 25%, and year-to-date, it has climbed 33%, outpacing the Nifty Next 50 index to which it is linked. Analysts expressed strong optimism following the Q1FY27 results. JM Financial maintained a Buy rating with a target price of ₹9,799, describing the quarter as a “blockbuster” with revenue, EBITDA, and profit after tax (PAT) exceeding estimates by 12%, 43%, and 39%, respectively.
Citi raised its target to ₹11,700, citing robust custom synthesis momentum and an EBITDA margin expansion of over 10 percentage points year-on-year to 40.7%. Jefferies upped its target to ₹10,200, highlighting a healthy beat driven by 50% year-on-year growth in the custom synthesis segment. JPMorgan kept its Overweight rating with a target of ₹9,100, viewing the quarter as a positive indicator of future earnings potential as large synthesis programs transition to commercial supply.
Goldman Sachs recommended Accumulate, raising its target to ₹9,070. The only dissenting view came from Kotak Institutional Equities, which retained a Sell rating with a revised target of ₹6,925, warning that the dramatic margin surge may not be sustainable due to the variable nature of validation batch supplies and pointing out stretched valuations at 37x FY28 EV/EBITDA.
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