Synopsis: Divi’s Laboratories could generate nearly $1 billion in revenue from GLP-1-related projects by FY32, according to Jefferies. The brokerage maintains a Buy rating with a Rs 8,200 target, citing strong peptide capabilities, global partnerships and rising global demand for GLP-1 drugs used in diabetes and obesity treatments.
Broking Jefferies is still optimistic about Divi’s Laboratories and has stated that the company is set to benefit from the growing importance of the global GLP-1 drug supply chain. This is because Divi’s is expanding its peptide production capabilities and has strong partnerships with global pharmaceutical companies to cater to the growing demand for GLP-1 drugs used to treat diabetes and obesity.
With a market cap of Rs 1.67 lakh crore, the shares of Divis Laboratories Ltd are trading at Rs 6,290. The shares are trading at a PE of 66, whereas their industry’s PE is at 27.9, and they have given a return of more than 78% over the last 5 years.
GLP-1 Opportunity Could Drive Divi’s Next Growth Phase
Broking firm Jefferies has reiterated its positive view on Divi’s Laboratories by giving a ‘Buy’ rating with a target price of Rs 8,200. The broking firm is of the view that the company is in a favourable position to reap the benefits of the growing global market for GLP-1 drugs used in diabetes and obesity treatments.
Jefferies said that Divi’s is gradually developing its business as a significant GLP and peptide CDMO player in the global pharmaceutical industry. With a growing market for peptide-based drugs from global pharmaceutical companies, Divi’s manufacturing expertise and long-standing relationships with clients can make them a key player in this growing market.
The broking firm has estimated that two complex oral GLP intermediates and injectable GLP projects can add substantially to the company’s revenues in the coming years. These two projects alone can add $600 million and $400 million in FY32, creating a potential $1 billion revenue opportunity from GLP-related products for the company.
Strong Peptide Pipeline and Global Partnerships
Another factor that Jefferies pointed out, apart from the other factors, was the strong peptide pipeline and partnerships with pharmaceutical companies globally, which are beneficial for the company’s growth. According to the broking, the company can benefit from the expansion of the supply chain, which is linked to the strengthening of the Indian ecosystem by Eli Lilly and Company.
With the support of the aforementioned factors, Jefferies expects that the company will grow by 15% in revenue and 20% in EPS from FY26 to FY32. If the trend continues, the company is likely to become a $2.7 billion revenue company in the early 2030s, based on the expansion in peptide and GLP manufacturing capabilities.
Financials
The revenue from operations for the company stood at Rs 2,604 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 2,319 crore, up by about 12 per cent YoY. However, the net profit stood at Rs 583 crore in Q3 FY26, down compared to the Rs 589 crore profit in Q3 FY25.
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