Divi's Laboratories shares hit record highs following strong Q2 results

Divi's Laboratories shares hit a fresh 52-week high after jumping over 6% on Monday following a strong surge during Sunday's Muhurat Trading session, driven by positive second-quarter earnings for FY27 and upbeat brokerage commentary.

Financial Results

The pharmaceutical company reported a consolidated net profit of ₹ 1,127 crore for the September quarter of FY27, marking a nearly 64% increase compared to the same period last year. Revenue from operations grew over 35% to reach ₹ 3,676 crore, while the company also posted a foreign exchange gain of ₹ 24 crore, down from ₹ 63 crore in the year-ago period.

Brokerage Views

Several brokerages shared positive outlooks following the results, focusing on custom synthesis and peptide manufacturing growth. Nuvama Institutional Equities maintained a 'BUY' rating and raised its target price to ₹ 12,000, pointing to new solid-phase peptide synthesis lines. Motilal Oswal Financial Services maintained a 'Neutral' rating with a target price of ₹ 11,110, noting that current valuations leave limited room for upside despite raising its earnings estimates. Goldman Sachs kept a 'BUY' rating with a target price of ₹ 11,700, noting that custom synthesis expanded by 54% and generics grew by 12%. JPMorgan reported an 'OVERWEIGHT' rating with a target price of ₹ 12,500, highlighting strong revenue and EBITDA growth that beat market expectations.

Market Position

Gaurav Arora, Head of Research at SAHI, noted that the stock is trading at an all-time high with ₹ 11,800 as the immediate resistance level and trailing support placed around ₹ 11,200.

Context

Custom synthesis and peptide manufacturing are specialized pharmaceutical sectors where companies produce complex chemical ingredients or custom molecules for global drug makers. Strong performance in these segments often signals high-value contract wins from major international pharmaceutical innovators.