Divi‘s Laboratories (DIVI.NS): Peptide Pipeline Nears Commercial Inflection; Reiterate Buy

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Divi‘s Laboratories (DIVI.NS): Peptide Pipeline Nears Commercial Inflection; Reiterate Buy

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14 Jul 2026 05:23:39 ET │ 12 pages

Divi's Laboratories (DIVI.NS)

Peptide Pipeline Nears Commercial Inflection; Reiterate Buy

CITI'S TAKE

Buy We reiterate Buy on Divi’s, as the next 12–15 months could be critical for

new product commercialization. Key opportunities include Price (14 Jul 26 13:09) Rs7,125.00

Tirzepatide/Orforglipron in GLP-1s and Enlicitide/Icotrokinra in complex Target price Rs9,450.00

oral peptides, providing strong pipeline visibility over CY27–30. GLP-1 Expected share price return 32.6%

supplies could begin in FY27, while Enlicitide/Icotrokinra could start from Expected dividend yield 0.5%

CY27, in our view. We view Entresto concerns as overdone; planned Expected total return 33.1%

capacity expansion suggests Divi’s aims to become a global leader in this

Market Cap Rs1,891,464M API, while Europe LOE should be more gradual than the U.S. cliff. Besides

US$20,053M management commentary on GLP-1 supplies, growth in the generics

segment would be key to watch in 1Q, given signs of price stabilization in

this business. Despite valuations at ~1SD above the 5-year mean, strong

growth visibility should support multiples, and Divi’s still trades at a Vivek Agrawal, CFAAC

discount to several smaller Indian CDMOs despite superior visibility. +91-22-6175-9875

Maintain Buy, Top India Pharma Pick. vivek1.agrawal@citi.com

GLP-1 Supplies: Potentially nearing commercialization - Divi’s GLP-1 opportunity

appears close, with the company indicating that the relevant facility has been

constructed and validation completed. For Tirzepatide, Citi’s China healthcare

analyst (John Yung) estimates the 2026 API/fragments market at c.US$3.3bn, with

Wuxi holding c.70% wallet share.