Divis Laboratories shares are currently trading at ₹8,367.2 on BSE (up 0.5% from previous close) and ₹8,375.0 on NSE (down 2.4%), as reported by Equitymaster. The stock has demonstrated strong momentum with a 27.2% gain over the last 30 days and 26.8% increase over the past year. The company's market capitalisation stands at ₹2,221,215.60 million, reflecting its significant market presence in the pharmaceutical sector.
Motilal Oswal has recommended a Neutral rating on Divis Laboratories with a target price of ₹7720 in its research report dated August 02, 2026. According to the brokerage's analysis, the company delivered higher-than-estimated financial performance for 1QFY27, with a 12%/40%/37% beat on revenue/EBITDA/PAT respectively. The stock's current trading price of ₹8,367.2 on BSE suggests a potential upside to the target price.
The company achieved the highest gross margin in the past 20 quarters during the quarter, as reported by Motilal Oswal. Strong traction in the custom synthesis business led to an earnings surprise, with the segmental mix and currency tailwinds contributing to improved profitability. Certain projects involving major capex are nearing completion, following which the company will undertake qualification and validation batch manufacturing.
The peptide-related business remains a strategic growth driver for Divis Laboratories, with customer projects progressing as planned across solid-phase and liquid-phase production, according to Motilal Oswal. The brokerage has raised its earnings estimate by 11%/5% for FY27/FY28, factoring in scale-up in CDMO contracts, progression of certain capital expenditure towards commercial manufacturing, and improved offtake of Nutraceuticals. The company declared a dividend of ₹30.0 per share for FY2026, resulting in a dividend yield of 0.4% at current prices.
Motilal Oswal values Divis Laboratories at 55x 12M forward earnings to arrive at the target price of ₹7720, as reported in their research. The valuation takes into account considerable volatility in certain raw materials/solvents prices due to geopolitical turmoil, which could impact future performance. The stock's 52-week high of ₹8,495.00 and 52-week low of ₹5,637.50 on BSE, along with its trailing 12-month earnings of ₹110.2, provide a comprehensive view of its valuation metrics.
