Divi's Laboratories shares get an upgrade from HSBC who raises price target by 57%
Published on 08/07/2025 11:39 AM
Divi's Laboratories shares get an upgrade from HSBC who raises price target by 57%Of the 31 analysts that have coverage on the stock, 14 have a "buy" rating, seven have a "hold" rating and 10 have a "sell" rating.By Shloka Badkar July 8, 2025, 11:39:52 AM IST (Published)2 Min ReadShares of Divi's Laboratories Ltd. gained on Tuesday, July 8, as brokerage firm HSBC upgraded its rating on the stock and raised its price target by 57%.
The brokerage has upgraded its rating to "buy" and raised its target to ₹7,900 per share from ₹5,020 apiece. This is a potential upside of 14.7% from its previous closing price of ₹6,888.5 apiece.
It said it sees a long runway of growth for Divi's Laboratories, led by tirzepatide, other peptides, and contrast media in medium term.
For Divi's, the brokerage sees revenue potential of around $450 million from peptides and around $260 million from contrast media by ₹2030.
It has estimated a earnings per share (EPS) compound annual growth rate (CAGR) of 23% for FY25-28.
On May 27, Morgan Stanley had reiterated its "overweight" recommendation on Divi's Laboratories, with a price target of ₹7,185 apiece. CNBC-TV18 wrote about this and since then, the stock is up 3% from those levels.
This came after the company's announcement of a major international long-term agreement to supply advanced intermediates to a global pharmaceutical player.
Divi's Labs had said it would invest ₹650 crore to ₹700 crore in capacity expansion, eyeing a significant revenue boost. The company said the manufacturing was expected to be operational from January 2027.
Of the 31 analysts that have coverage on the stock, 14 have a "buy" rating, seven have a "hold" rating and 10 have a "sell" rating.
Divi's Laboratories shares gained 2.65% to hit an intraday high of ₹7,071.5 apiece just after market open on Tuesday, July 8. The stock was up 0.86% at ₹6,947.5 apiece at 11.15 am. It has gained 14.4% this year, so far.
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