Latest news with #DivisLaboratories
Business Standard
18-07-2025
- Business
- Business Standard
Indices trade lower; pharma shares under pressure
The key equity benchmarks continued to trade with significant cuts in mid-morning trade despite positive global cues. Investors are monitoring India-US trade deal and ongoing corporate earnings. The Nifty hovered below 25,000 level Pharma shares dropped after advancing in the past trading session. At 11:25 IST, the barometer index, the S&P BSE Sensex declined 493.72 points or 0.60% to 81,757.65. The Nifty 50 index fell 145 points or 0.58% to 24,965.45. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.41% and the S&P BSE Small-Cap index declined 0.46%. The market breadth was weak. On the BSE, 1,399 shares rose and 2,358 shares fell. A total of 197 shares were unchanged. Buzzing Index: The Nifty pharma index declined 0.69% to 22,522.90. The index advanced 0.38% in the past trading session. Lupin (down 1.3%), Divis Laboratories (down 1.3%), Granules India (down 1.15%), Zydus Lifesciences (down 1.06%) and Aurobindo Pharma (down 0.94%), Sun Pharmaceutical Industries (down 0.86%), Ipca Laboratories (down 0.85%), J B Chemicals & Pharmaceuticals (down 0.73%), Cipla (down 0.68%) and Dr Reddys Laboratories (down 0.67%) declined. Lupin declined 1.3%. The company announced that its wholly owned subsidiary, Lupin Manufacturing Solutions (LMS), has received GMP certification from the Therapeutic Goods Administration (TGA), Australias regulatory authority for medicines and medical devices. Stocks in Spotlight: Ceat fell 1.04% after the company's net profit declined 27.06% to Rs 112.45 crore on a 10.54% increase in revenue to Rs 3,529.41 crore in Q1 FY26 over Q1 FY25. Global Markets: Asian shares were trading higher on Friday, taking cues from Wall Street's rally overnight. Investors cheered a batch of upbeat US economic reports and corporate earnings that comfortably beat expectations. In Japan, inflation showed some signs of cooling. Core inflation for June eased to 3.3%, down from Mays 29-month high of 3.7%, with rice prices showing signs of moderation. Headline inflation also slipped to 3.3%, from 3.5% the previous month. However, the "core-core" inflation gauge, closely tracked by the Bank of Japan, as it strips out both food and energy, edged up to 3.4%, hinting that underlying price pressures are still in play. Over on Wall Street, the S&P 500 and Nasdaq closed at record highs on Thursday. Strong earnings and resilient consumer spending drove the rally. The Dow Jones rose 0.52%, while the S&P 500 climbed 0.54%, and the Nasdaq jumped 0.74%. Investors also brushed off worries about new US trade tariffs set to kick in from August 1 under President Trump, focusing instead on growth and AI-fueled optimism. Taiwanese chip giant TSMC stole the spotlight with stellar earnings and a bullish outlook on AI-related demand. Its US-listed shares surged 3.4%, igniting gains across the semiconductor and tech sectors. Adding to the momentum, US retail sales rebounded strongly in June after two months of decline. Sales rose 0.6% month-on-month, reversing a 0.9% dip in May, thanks to increased auto purchases and a still-healthy consumer.
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Business Standard
08-07-2025
- Business
- Business Standard
Divis Labs bucks weak pharma shares trend; hits new high on strong Q1 hopes
Divis Laboratories share price Shares of Divis Laboratories hit a new high of ₹7,077.70, gaining 3 per cent on the BSE in Tuesday's intra-day trade on expectations of strong June quarter (Q1FY26) earnings. The stock price of the pharmaceutical company surpassed its previous high of ₹6,940.95 touched on July 4. At 01:41 PM; Divis Labs was trading 0.5 per cent higher at ₹6,918.50 on the BSE. In comparison, the BSE Healthcare index was down nearly 1 per cent and BSE Sensex was trading flat or up 0.05 per cent. In the past six months, the stock has outperformed the market by surging 18 per cent, as against 1.4 per cent fall in healthcare index and 7 per cent rise in the Sensex. Divis Labs - management commentary post Q4 results Despite the complex global environment, the company's integrated efforts across generics, custom synthesis (CS), peptides and emerging growth areas supported by resilient procurement and logistical strategies, placed the company in a strong position to capitalize on future opportunities and enhance competitiveness in global market, the management said in the Q4FY25 earnings call. The company's strong growth continues in the CS segment backed by a strong pipeline of customer inquiries and regular on-site interactions. The company signed a long-term supply agreement with a major global pharma player for the manufacture of an active API intermediate. Earlier CS contracts were also for API contracts. Both these contracts will start contributing from late CY26 or early CY27. With production underway at Kakinada Phase I, margin improvements are anticipated starting FY26. The management guided growth capex of ₹1,400 crore in FY26 and remains confident about double-digit revenue growth. Divis Labs - Q1FY26 result preview/outlook For the Contract Research, Development, and Manufacturing Organization (CRDMO) segments, analysts expect strong year-on-year (YoY) growth in 1QFY26. Kotak Institutional Equities expects Divi's to report overall sales growth of 18 per cent year-on-year (YoY) in Q1FY26. The brokerage firm expects generic active pharmaceutical ingredient (APIs) to grow 13 per cent YoY in Q1FY26. It expects continued traction in CSM with 23 per cent YoY growth in Q1FY26. However, the brokerage firm expects Divi's gross margins to remain flat quarter-on-quarter at 62.0 per cent. Overall Q1FY26 EBITDA expected to grow 33 per cent YoY to ₹ 830 crore, with EBITDA margins expanding 370 bps YoY to 33.1 per cent. Divi's generates ~$160mn revenue from Sacubitril/valsartan, which is likely to decrease in H2FY26E due to potential generic entries. However, analysts at Nuvama Institutional Equities think Divi's is insulated from the impact of this product due to addition of new products from large clients in the CS business. Generic API and nutraceutical businesses have grown in H2FY25 and the brokerage firm thinks both have potential for a growth surprise in FY26. Unit-III and two other capex programmes also position Divi's well for incremental manufacturing opportunities, including in peptides/GLP-1s and contract media. Analysts think its oral GLP-1 intermediate capacity can generate $100–175 million revenue. The brokerage firm has a 'BUY' rating on the stock with a target price of ₹7,225 due to new opportunities from its capex programmes and GLP-1s.
Business Standard
24-05-2025
- Business
- Business Standard
Divis Lab enters into a LT manufacturing and supply agreement with a global pharma co.
Divis Laboratories has entered into a long term manufacturing and supply agreement with a global pharma company. Under this agreement, the Company will be manufacturing and supplying advanced intermediates as per the commercial terms agreed between the parties. The Company expects meaningful revenue contribution from this long-term agreement. Cost of capacity addition for manufacturing under this agreement is estimated to be Rs.650-750 crore, which will be funded from the capacity reservation advance proposed to be paid by the customer phase wise under this Agreement.
Business Standard
24-05-2025
- Business
- Business Standard
Divis Lab inks long-term global pharma deal
Divis Laboratories has announced the signing of a long-term manufacturing and supply agreement with a global pharmaceutical company. As part of the agreement, Divis will manufacture and supply advanced pharmaceutical intermediates to the global partner. The company has stated that the contract is expected to contribute meaningfully to its revenue over the long term. To support the execution of this deal, Divis plans to invest between Rs 650 crore and Rs 750 crore to expand its manufacturing capacity. This investment will be funded through capacity reservation advances that will be paid in phases by the customer. Divis Laboratories believes the partnership will not only ensure a reliable supply chain for the customer but also allow the company to strengthen its foothold in the custom synthesis space. The company clarified that the deal does not involve any share exchange or related party transactions. There is no involvement of the promoter group or affiliated companies in the agreement. Divis Laboratories is engaged in the manufacture of active pharmaceutical ingredients, intermediates and nutraceutical ingredients. The company's consolidated net profit jumped 23.04% to Rs 662 crore while revenue from operations grew by 12.24% to Rs 2,585 crore in Q4 March 2025 over Q4 March 2024.
Reuters
19-05-2025
- Business
- Reuters
Indian share benchmarks set for muted start after US rating downgrade
May 19 (Reuters) - India's equity benchmark indexes are likely to open little changed on Monday, as global investor sentiment was dented after Moody's downgraded U.S. government's credit rating on Friday. The Gift Nifty futures were trading at 25,066.5 as of 8:10 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open around its previous close of 25,019.8. Most Asian markets were lower on the day, with MSCI Asia ex Japan (.MIAPJ0000PUS), opens new tab down 0.7%, while U.S. equity futures and the dollar also slipped. U.S. Treasury yields rose on Friday after rating agency Moody's downgraded the U.S. government to AA1 from AAA, citing rising debt and interest "that are significantly higher than similarly rated sovereigns". Higher Treasury yields make bonds attractive for foreign portfolio investors, which does not bode well for equities in emerging markets such as India. Investors will closely watch if the rising yields trigger any change in the course of foreign flows. Foreign portfolio investors bought Indian shares worth 159.25 billion rupees ($1.9 billion) last week, when the Nifty 50 gained 4.2%. This was the fifth consecutive weekly buying from these investors. Traders are waiting for news on India-U.S. trade talks after U.S. President Donald Trump said last week that India has offered a trade deal with zero tariffs. ** Divi's Laboratories ( opens new tab posts higher profit, opens new tab and revenue for the fourth quarter, with analysts attributing the growth to generic active pharmaceutical ingredients ** Dr Reddy's Laboratories ( opens new tab says U.S. Food and Drug Administration completed inspection, opens new tab at its New York facility and issued a form 483 with two observations ** Bharat Electronics ( opens new tab says it received orders worth 5.72 billion rupees since the last disclosure on April 7
