Divi’s Labs Shares Jump Over 5%, Hits 52-Week High: Here's Why

Shares of Divi's Laboratories Ltd. witnessed a sharp rise of over 5% on Monday, hitting a 52-week high, after reporting its Q4 results. The pharmaceutical company recorded a consolidated profit after tax (PAT) of Rs 662 crore, marking an uptick from Rs 538 crore reported in the corresponding quarter of the previous fiscal. Total income for the quarter ending March stood at Rs 2,671 crore as against Rs 2,381 crore recorded in the same period of last year.

At 2:15 pm, the shares of Divi's Laboratories Ltd. were trading at Rs 6,631.50 price level, up by 5.61% on the National Stock Exchange.

The management has projected "double-digit growth" in its guidance for FY26. For the full financial year 2024-2025, the company reported a consolidated total income of Rs 9,712 crore as against Rs 8,184 crore recorded in the previous fiscal year. PAT stood at Rs 2,191 crore for FY25, indicating a significant uptick from Rs 1,600 crore recorded in the last financial year.

"The Board of Directors has recommended a Dividend of Rs 30/- per equity share of Rs 2/- each i.e, 1500% for the financial year 2024-25 subject to the approval of the Members at the ensuing Annual General Meeting of the Company," the company said in an exchange filing.

Divi's Laboratories Ltd. Share Outlook

"Management guidance of 'double-digit growth' in FY26 is in line with our estimates. Meanwhile, narratives around China + 1 and GLP-1 have kept very high growth expectations alive and taken the stock valuation beyond reasonable levels. We retain our FY26 and FY27 core EPS estimates unchanged," Elara Securities said in its report.

The brokerage firm has maintained a SELL rating on the pharmaceutical firm, with a target price set at Rs 4,098.

In the last 6 months, the shares of the pharma company witnessed a double-digit rise of 12% on the NSE. So far this year, the stock has increased by 9.12%. On an annual basis, the share price trajectory has been robust with the stock rising over 64%.