Buy Divi's Laboratories, target price Rs 5750: Motilal Oswal

Motilal Oswal has buy call on Divi's Laboratories with a target price of Rs 5750. The current market price of Divi's Laboratories Ltd. is Rs 4867.05. Time period given by analyst is one year when Divi's Laboratories Ltd. price can reach defined target.

Divi's Laboratories Ltd., incorporated in the year 1990, is a Large Cap company (having a market cap of Rs 130504.35 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1996.61 Crore, up 10.21 % from last quarter Total Income of Rs 1811.71 Crore and up 14.24 % from last year same quarter Total Income of Rs 1747.80 Crore. Company reported net profit after tax of Rs 557.11 Crore in latest quarter.


Investment Rationale
The brokerage reiterates BUY, supported by a) a ramp-up in existing products and continued growth in legacy products, coupled with market leadership, b) continued momentum in the CS segment, with chemistry expertise and long-term relationships with innovators, c) an improving outlook for Nutraceutical, supported by higher capacity, and d) cost leadership through process and technological improvements.

Promoter/FII Holdings
Promoters held 52 per cent stake in the company as of June 30, 2021, while FIIs held 20.6 per cent, DIIs 16.6 per cent and public and other 10.9 per cent.