Divi's Laboratories shares surged 2.7% to ₹8,046.5 on Friday, July 31, following a significant analyst upgrade from brokerage firm Macquarie. The brokerage reiterated its 'Outperform' rating and raised the price target by 36% to ₹10,200 from ₹7,500, making it the first and only target on the street above ₹10,000 per share. This represents an upside of approximately 30.2% from the stock's Thursday closing price of ₹7,835. According to CNBC TV18, the stock has now extended its year-to-date gains to 27%, demonstrating strong investor confidence in the company's growth prospects.
For the quarter ending March 2026, Divi's Laboratories reported consolidated revenue of ₹2,831.00 crore, an increase from ₹2,604.00 crore in the preceding December 2025 quarter. Net profit also saw a significant rise, reaching ₹751.00 crore in March 2026 compared to ₹583.00 crore in December 2025. As reported by Moneycontrol, Earnings Per Share (EPS) for the March 2026 quarter stood at ₹28.34, up from ₹21.98 in December 2025, demonstrating robust operational performance across key financial metrics.
Macquarie believes the peptide CDMO market is poised for strong medium-term growth, with the brokerage expecting the market to expand from nearly $4 billion in 2025 to around $20 billion-$25 billion by 2030. This growth is driven by increasing adoption of GLP-1 and other peptide therapies, higher active pharmaceutical ingredient (API) requirements, and a growing pipeline of Phase 3 peptide assets. According to CNBC TV18, Macquarie estimates that Divi's existing solid-phase peptide synthesis capacity alone could support more than $550 million in revenue potential, with additional upside from liquid-phase peptide synthesis. The company's integrated manufacturing capabilities and scale position it well to capitalise on this opportunity and support its goal of becoming a leader in peptide CDMO manufacturing.
According to CNBC TV18, Divi's has built a vertically integrated peptide manufacturing platform spanning building blocks, reagents and resins, which offers cost and quality advantages over peers. The company currently has 20,000-litre solid-phase peptide synthesis capacity and plans to scale it further with an industry-leading 18,600-litre liquid-phase peptide synthesis (LPPS) reactor. Macquarie also raised its earnings estimates and rolled them forward to their June 2028 EBITDA estimates, leading to the higher target price. The company will be reporting its June quarter results on Saturday, August 1.
According to Bloomberg analyst recommendations, 16 of the 33 analysts covering Divi's Laboratories have a 'Buy' rating on the stock, while seven recommend 'Hold' and 10 have a 'Sell' rating. The positive analyst sentiment reflects growing confidence in the company's peptide CDMO strategy and market positioning. The stock is a constituent of the Nifty Next 50 index, indicating its significant market presence and growth potential, with the positive movement in today's trading session demonstrating investor confidence in the pharmaceutical company's financial performance and future prospects.
