Divi’s Laboratories Hits 52-Week High: Analysts Predict More Upside After 55% Rally YTD

Divi’s Laboratories shares have been in the spotlight this week after Citi Research gave the stock a ‘buy’ rating, setting a target price of ₹6,400. In just one week, the stock jumped 12.02%, and since the start of the year, it has surged by over 55%. On the BSE, Divi’s Laboratories shares rose nearly 3% today, reaching a 52-week high of ₹6,106.50 per share, after opening at an intraday low of ₹5,952.05.

Near-Term Outlook

Ruchit Jain, Lead Research Analyst at 5paisa, mentioned that the immediate challenge for the stock is around ₹6,150. If it breaks through this level, the stock could continue its rise, potentially reaching ₹7,000 in the mid-term.

A Top Choice in Indian Pharma

Citi Research’s report pointed out that Divi’s Laboratories is well-positioned in the production of GLP-1 active pharmaceutical ingredients (API), which could bring in revenues of over US$800 million by 2030. The company is also benefiting from the global trend of diversifying supply chains, as shown by new additions to its portfolio, such as Ribociclib and Upadacitinib.

Eli Lilly, one of the major clients, is seeing strong demand for its products and is working to expand its supply chain. This aligns with the progress of the US Biosecure Act, which is pushing innovators to find new suppliers. Divi’s ability to scale production could make it a key player in the industry. While European contract development and manufacturing organisations (CDMOs) will remain relevant, they might face challenges in meeting demand due to high costs and difficulties in expanding capacity.

Impact of the US Biosecure Act

Citi Research also noted that the US Biosecure Act, regardless of how strictly it is enforced, is encouraging innovators to diversify their supply chains. As more companies trust Divi’s Laboratories, the company is expected to become a major player in chemistry-based CDMO projects.

Stock Valuation

According to the report, Divi’s Laboratories has gained about 40% year-to-date, driven by developments related to the US Biosecure Act. The stock is currently trading 20% higher than its usual premium compared to the NSE Pharma index.

Citi Research values the company using a 40x EV/EBITDA multiple, based on its expected earnings in September 2026, giving a target price of ₹6,400. This valuation is about 30% higher than the company’s five-year average, and Citi believes that the stock will continue to command high valuations as global innovators diversify their supply chains, with Divi’s emerging as a key beneficiary.