8 Feb 2024 , 03:19 PM
Result date: February 10, 2024
Recommendation: Reduce
Target price: ₹3,160
Analysts at IIFL Capital Services believe Divi’s Laboratories could post revenue growth of 6% sequentially and 18% over the year-ago quarter. This will be driven by 4/9% sequential revenue growth in the Generic/CS segment, as the CS segment is likely to benefit from the fast-track Contrast Media project (Iopromide).
Analysts at IIFL Capital Services have also factored-in the company’s EBITDA margins to improve ~340 basis points sequentially to 29.5%, driven by sequential growth in the CS segment and stabilization in raw material prices. They expect nil contribution from Molnu in Q3FY24 versus $2mn in the year-ago quarter.
Profit After Tax or PAT could improve 39% over the year-ago quarter and 16% sequentially.
Important management insights to watch out for:
₹ Million |
December 2023 estimates |
YoY change |
QoQ change |
Revenue |
20,150 |
18.0% |
5.6% |
Generic revenue* |
11,863 |
15.8% |
3.6% |
CS |
8,287 |
21.3% |
8.5% |
EBITDA |
5,944 |
45.6% |
19.1% |
EBITDA margin |
29.5% |
559 bps |
336 bps |
Profit After Tax |
4,256 |
38.7% |
15.7% |
Source: IIFL Research
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