The stock of contract development and manufacturing organisation (CDMO) Divi’s Laboratories was among the top gainers in the BSE 100 index on Monday. It rose 4.81 per cent as its fourth-quarter revenues beat estimates across key segments, while margins hit multi-quarter highs.
The management has guided for double-digit growth for 2025-26 (FY26), which, coupled with stronger momentum from China+1 and the commercialisation of the blood sugar control drug glucagon-like peptide-1 (GLP-1), will act as key triggers. Brokerages, however, believe upsides are limited as valuations have turned expensive.
Divi’s posted a 12 per cent growth in revenues over the year-ago quarter. Although revenue growth has moderated after four consecutive quarters of top line growth in the 18-25 per cent range, this was on a higher base. Growth was led by the custom synthesis manufacturing (CSM) and generics segments, which grew by 12 per cent and 13 per cent, respectively.
