Divi's Laboratories shares rallied over 6% on Monday, 9 November, hitting a fresh 52-week high for the second consecutive session, after surging more than 8% during Sunday's special Muhurat Trading session. Strong second-quarter earnings for FY27 and upbeat brokerage commentary on the company's growth prospects, particularly in its custom synthesis and peptides businesses, have strengthened investor sentiment.
The pharmaceutical company's consolidated net profit jumped nearly 64% year-on-year (YoY) to ₹1,127 crore in the September quarter of FY27, compared with the corresponding period last year. Revenue from operations increased over 35% YoY to ₹3,676 crore during Q2 FY27.
Divi's Laboratories reported a foreign exchange gain of ₹24 crore during the quarter, compared with ₹63 crore in the year-ago period.
Following the strong quarterly performance, several brokerages have turned their attention to Divi's growth opportunities, particularly the expansion of its custom synthesis and peptide manufacturing capabilities. While Nuvama Institutional Equities, Goldman Sachs and JPMorgan remain positive on the stock, Motilal Oswal Financial Services has maintained a Neutral rating, citing limited upside at current valuations.
Nuvama Institutional Equities maintained its 'BUY' rating on Divi's Laboratories, citing the company's promising opportunity in peptide manufacturing. The brokerage said the installation of 3,000-litre solid-phase peptide synthesis (SPPS) lines to meet programme requirements, along with its focus on innovation-led peptides, positions the company for meaningful scale-up over the next two to three years.