Divis Lab gains as broker reiterates buy call

Divis Laboratories rose 1.94% to Rs 6143.35 after a foreign broker reiterated its 'buy' rating on the stock with a price target of Rs 7,750, citing attractive valuations and supportive sector tailwinds.

The brokerage downplayed concerns over Eli Lilly?s oral GLP-1 candidate Orforglipron and generic risks to Novartis? heart drug Entresto, which contributes about 20% of Divi?s consolidated revenue. It expects Divi?s to remain a key API supplier, supported by a healthy order pipeline and rising demand in peptides, making the recent stock weakness a buying opportunity.

Over the past month, the stock has fallen 7.08% compared with a 0.84% decline in the Sensex.

Divis Laboratories is engaged in the manufacture of active pharmaceutical ingredients, intermediates and nutraceutical ingredients. The company's consolidated net profit rose 26.74% to Rs 545 crore while net sales rose 13.79% to Rs 2410 crore in Q1 June 2025 over Q1 June 2024.

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