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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