Pharma firm Divi's FY23 growth shaped by high base, near-term weakness

Brokerages give add, accumulate or buy ratings given the company's growth and track record

The June quarter result of Divi’s Laboratories. the country’s second-largest pharma company by market capitalisation, was a mixed bag. The contract research and manufacturing services (CRAMS) major reported revenues better than expected but operational performance fell due to pressure on profitability.

Overall sale at Rs 2,254 crore was up 15 per cent year-on-year. Sales growth was driven by custom chemical synthesis, Divi’s largest segment accounting for 53 per cent of revenues. Sales in the segment was up 22 per cent y-o-y. It however reported a 31 per cent decline in sales on a sequential basis, given falling revenues from Covid-19