Divi's Laboratories Peptide ambitions building; custom synthesis commercialization to unlock next leg of growth

研报英文原文证据摘录

Divi's Laboratories Peptide ambitions building; custom synthesis commercialization to unlock next leg of growth

Bansi Desai, CFA AC Asia Pacific Equity Research

(91 22) 6157 3581 24 May 2026 J P M O R G A N

bansi.desai@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

Founded in 1990, Divi’s has emerged as India’s largest and most

globally relevant CDMO with leadership in custom synthesis

and APIs. Traditionally strong in chiral chemistry and high-

tonnage compounds, Divi’s is now advancing into high entry

barrier, high growth areas like contrast media and peptides

(including GLP-1), driving a robust growth outlook. Despite

near-term softness in generics pricing and Entresto LOE, Divi’s

diversified portfolio, expanding pipeline, strong customer

relationships and Unit III capacity expansion underpin a strong

YTD 1m 3m 12m medium-term trajectory (forecast 18% earnings CAGR over

Abs 8.6% 9.6% 9.5% 5.3% FY26-28). Its scale, compliance and innovation make it the

Rel 17.9% 12.3% 16.7% 9.0%

strongest and most resilient player in the space, in our view. We

Company Data rate the stock OW.

Shares O/S (mn) 265

Valuation52-week range (Rs) 7,077.70-5,636.50

Market cap ($ mn) 19,106 Our PT of Rs7,400 is based on a 55x PER on Mar-28E EPS, in

Exchange rate 95.69 line with our target multiple for Anthem Biosciences given both

Free float (%) 41.2%

3M ADV (mn) 0.32 have a higher portion of innovator business, strong track records

3M ADV ($ mn) 21.5 and are backed by technocrat promoters. Divis’s target multiple

Volatility (90 Day) 23 is in line with its three-year historical average and ~50%

Index NIFTY

BBG ANR (Buy | Hold | Sell) 16|6|11 premium to its 10-year historical average, reflecting the

favorable outsourcing environment and robust growth