Divi’s Laboratories Share Price Target: Even after reporting a healthy financial performance in Q1 FY26, Divi’s Laboratories is facing cautious ratings from global brokerage analysts.
The Hyderabad-based largecap drug maker reported a consolidated net profit of Rs 545 crore during the quarter, marking a 27 per cent year-on-year (YoY) jump. Revenue from operations also rose 13.8 per cent YoY to Rs 2,410 crore. Its total income for the quarter stood at Rs 2,529 crore, compared to Rs 2,197 crore in Q1 FY25.
Despite the growth in profit, analysts at brokerages – Jefferies, Goldman Sachs, HSBC, and Morgan Stanley – have shown mixed reactions to Divi’s Q1 performance, citing concerns over near-term business visibility. Here is what they suggested:
Jefferies has maintained a ‘hold’ rating on the stock but raised its target price to Rs 6,750. The brokerage flagged that Divi’s missed expectations in Q1 and highlighted that API growth remains weak. It also noted that the Custom Synthesis business faces near-term uncertainty, while FY26 is expected to be a heavy capital expenditure year, which could weigh on margins.
Similarly, Goldman Sachs remained cautious, maintaining a ‘neutral’ stance and cutting its target price to Rs 6,075. The firm cited ongoing headwinds and execution risks in Divi’s key growth segments as reasons for the downward revision. HSBC, on the other hand, retained its ‘buy’ call, trimming its price target to Rs 7,700.
Morgan Stanley is also positive on the stock and maintained an ‘overweight’ rating, though it revised its target price down to Rs 7,024. The brokerage acknowledged the company’s strong market positioning but flagged soft near-term growth visibility as a concern.
Divi’s Labs shares fall almost 3%; here’s how it performed in past years
Shares of Divi’s Laboratories fell as much as 2.7 per cent on Thursday in the early hours of trading session, hitting an intraday low of Rs 5,968.60 on the BSE by 10:30 am.
- Up 115.37 per cent over the past 5 years
- Up 21.23 per cent in the past 1 year
- Down 2.35 per cent in the past 6 months
- Down 12.88 per cent in the past 1 month
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
