DIVISLAB

** Divi's Laboratories DIVI.NS rises ~5% in second session of gains post Q3 results

** Co's custom synthesis segment grows 45% y/y in Q3

** BOB Capital upgrades to "hold" from "sell", citing co's effective opportunity utilisation in the fast growing segment

** Jefferies retains "hold" despite custom synthesis improving product mix and profit

** Says co needs to overcome high rev concentration of key heart failure drug the patent for which will expire in 2026

** Co working on glucose stabilising hormone GLP-1 manufacturing process to diversify

** Systematix Equities says DIVI seeing interest in GLPs from several MNCs; has strong position due to backward integration

** But retains "sell" on rich stock valuation

** DIVI rated "hold" on avg; mean PT of 5,427 rupees is 12.2% downside to current price of 6,185.7 rupees

** Stock up 66% YTD

(Reporting by Ananta Agarwal in Bengaluru)

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HYDERABAD, Feb 3 (Reuters) - India's Divi's Laboratories DIVI.NS reported a better-than-expected quarterly profit on Monday, aided by strong performance of its business that focuses on customised production of chemical compounds used in drugs, sending its shares higher.

The company's consolidated net profit jumped 64.5% to 5.89 billion rupees ($67.6 million) in the third quarter, slightly above analysts' estimates of 5.13 billion rupees, as per LSEG data.

The Hyderabad-based drugmaker's shares reversed course from a 0.2% dip to trade 3.3% higher after the results.

Divi's is one of India's largest manufacturers of active pharmaceutical ingredients (API), key components of a drug that produce the intended therapeutic effects. Its client list spans more than 100 countries and includes major drugmakers such as Novartis NOVN.S.

Its revenue from operations climbed 25% to 23.19 billion rupees during the quarter, roughly in line with analysts' estimate of 23.43 billion rupees.

The company also provides contract development and manufacturing (CDMO) services. Divi's and its local peers stand to gain as major drugmakers are diversifying their supply chain to limit their reliance on China.

Divi's, in particular, has said it is also banking on demand from obesity drug manufacturers as they scramble to meet skyrocketing customer demand.

However, its generics business, much like those of its peers, is facing pricing pressure, a situation it hopes will stabilise this year.

($1 = 87.1190 Indian rupees)

(Reporting by Rishika Sadam and Kashish Tandon; Editing by Rashmi Aich and Savio D'Souza)

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Jan 2 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABORATORIES - STARTS COMMERCIAL OPERATIONS AT UNIT III IN ANDHRA PRADESH

Source text: ID:nBSE2pGbB7

Further company coverage: DIVI.NS

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Adds details paragraph 2 onwards

Dec 31 (Reuters) - Indian contract drugmaker Anthem Biosciences filed for a 33.95-billion-rupee ($397 million) initial public offering, draft papers showed on Tuesday, at the fag end of what has been a red-hot year for companies listing on the stock market.

Anthem, whose services include early-stage drug discovery and drug efficacy testing, said private equity firm True North and drugmaker DavosPharma are among investors who will sell shares in the IPO.

The company will not sell any shares and it did not give any other details on the offering.

The Indian IPO market has been bustling this year, with over 300 companies having raised $17.5 billion as of mid-December, more than double the amount raised last year, LSEG data showed.

That gives it the top spot globally in terms of proceeds and volumes, according to consultancy firm KPMG.

Anthem, which began operations in 2007 and has two manufacturing facilities, is also going public at a time when global drugmakers are turning to India and other markets to limit their reliance on Chinese contractors.

Begaluru-based Anthem also makes active pharmaceutical ingredients (API), which are the main component of a drug, as well as dietary supplements and probiotics.

It competes with the likes of Syngene International SYNN.NS, Divi's Laboratories DIVI.NS and newly-listed Sai Life Sciences SAIE.NS among Indian API makers.

($1 = 85.5720 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)

(([email protected]; 8800437922;))

** Shares of Divi's Laboratories DIVI.NS settle down 2.6% 6,096.20 rupees, their worst day since mid-August

** DIVI second-biggest pct loser among pharma stocks .NIPHARM which is up 0.2%

** Novartis NOVN.S failed to persuade U.S. court on Wednesday to halt generic version of its blockbuster heart drug Entresto

** Divi's Labs supplies active pharmaceutical ingredients for Entresto

** Stock had dropped 4% in mid-August when Novartis lost initial bid to block generic version of Entresto

** DIVI among 11 stocks on 20-member pharma index rated "hold", rest rated "buy" or higher - LSEG data

** Stock up ~56% YTD vs pharma index's 34% gain

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

** Divi's Laboratories DIVI.NS shares up 3.8%, top gainer in Nifty pharma index .NIPHARM which is up 2.6%

** Citi says DIVI remains its top pick in Indian pharmaceutical sector

** Brokerage expects DIVI's key drug Entresto active pharma ingredient (API) sales to rise vs street expectations of decline

** DIVI likely to supply Entresto API to generics manufacturers as well after patent expires - Citi

** DIVI snaps three-day losing streak

** Citi has "buy" rating on stock, with PT at 6,850 rupees

** Analysts on average rate stock a "hold", with median PT at 5,285 rupees, per LSEG data

** DIVI up ~ 59% YTD vs ~32% gains in pharma index

(Reporting by Sethuraman NR)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Shares of Divi's Laboratories Ltd DIVI.NS up 4.8% at 5,811.70 rupees

** DIVI rose as much as 6% to record 5,878 rupees earlier in session

** Citi begins coverage of drugmaker with "buy" and Street-high PT of 6,400 rupees as it sees DIVI benefiting from supply-chain diversification of active pharmaceutical ingredients for GLP-1s or weight loss drugs

** DIVI has potential to become prominent supplier to Eli Lilly LLY.N as it diversifies suppliers with U.S. Biosecure Act looming and given DIVI's own capabilities in scaling up at industrial scale - Citi

** Analysts tracking DIVI rate it "hold" on avg, same as 10 other stocks on 20-member Nifty Pharma .NIPHARM index - LSEG data

** DIVI top pct gainer on NIPHARM

** Stock's ~48% YTD rise outperforms index's 40% rise

(Reporting by Nandan Mandayam in Bengaluru)

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** Shares of Divi's Laboratories DIVI.NS gain ~4% at 4,895 rupees

** DIVI top pct gainer on Nifty 50 .NSEI and Nifty pharma index .NIPHARM

** U.S. appeals court puts stay order on US FDA's approval for generic version of Novartis' NOVN.S top-selling heart failure drug Entresto, for which DIVI makes the API Sacubitril, Bloomberg Law reports

** Novartis did not immediately respond to Reuters' request for comment

** "While litigation is still ongoing, the stay on approval blocks the launch of generic version of Entresto for now, which is a positive for DIVI," said Shrikant Akolkar of Nuvama Institutional Equities

** DIVI fell the most in nearly 16 months on Aug. 14 when Novartis lost initial bid to block generic versions of Entresto

** Stock up ~26% YTD vs ~34% gains in pharma index

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

** Shares of Divi's Laboratories DIVI.NS fall 4.2% to 4,656 rupees, the most on the Nifty 50 .NSEI

** Novartis NOVN.S loses initial bid to block generic versions of its top-selling heart drug Entresto, for which Divi's supplies pharma ingredients, or APIs

** Entresto is among largest drugs in Divi's portfolio and generics could hurt FY27 EPS by 10%, says Kotak Institutional Equities

** Adds: "We have not factored in a generic entry in Entresto, which will hurt earnings, while valuations continue to stay prohibitively expensive"

** Brokerage reiterates "sell" and a target price of 3,600 rupees, an implied downside of about 26%

** Analysts avg rating on DIVI is "hold"; median target price is 4,437.50 rupees apiece --LSEG data

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

** Shares of Divi's Laboratories DIVI.NS fall 1.7% to 4,893 rupees

** Stock among top losers on Nifty 50 index .NSEI, which is down 1.81%

** DIVI saw a 21% rise in Q1 consolidated net profit, however analysts flag slow margin recovery

** Co's generic API business reported a muted growth of ~1% Y/Y, with the increase in volumes being offset by steep price erosion, said analysts at Antique Stock Broking

** Continued pricing pressure in generic-APIs, overheads at Kakinada plant and custom-synthesis project would drag margins- Ambit Capital Research

** Twenty-two analysts covering the stock on avg have a "hold" rating; median PT is 3,965 rupees - LSEG data

** Stock up 7% so far this qtr, vs a 10.6% rise in Nifty pharma index .NIPHARM

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

July 19 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABS - US-FDA INSPECTION OF COMPANY'S UNIT-II MANUFACTURING FACILITY AT ANDHRA PRADESH

• DIVI'S LABS - US-FDA INSPECTION IS SUCCESSFULLY COMPLETED WITH ONE PROCEDURAL OBSERVATION

Source text for Eikon: [ID:]

Further company coverage: DIVI.NS

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June 21 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• NSE CIRCULAR: DIVI'S LABORATORIES AND TRENT LTD NOT AVAILABLE FOR TRADING IN T+0 ROLLING SETTLEMENT CYCLE ON JUNE 24

Source text for Eikon: [ID:]

Further company coverage: DIVI.NS

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** Shares of Divi's Laboratories DIVI.NS rise 5.7% to two-year high of 4,359 rupees, rallying for 6th session in a row

** DIVI's top gainer on benchmark Nifty 50 .NSEI and pharma index .NIPHARM

** Co's Q4 consol net profit rose ~68% Y/Y on strong demand

** Motilal Oswal expects DIVI to gain market share and maintain profitability in active pharmaceutical ingredients (API) portfolio

** Prabhudas Lilladher says gross margins stabilized, likely to improve on better product mix and stable raw material prices

** Trading vol is over 4x the 30-day avg, busiest day in a year

** DIVI up 10% YTD, more than the Nifty 50 (~6%), but less than pharma index (~14%)

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

April 25 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• IN PROCESS OF ENTERING INTO A LONG-TERM SUPPLY AGREEMENT WITH A CUSTOMER

• PLANNING FOR CAPACITY ADDITION AT ITS MANUFACTURING FACILITY

• ESTIMATED INVESTMENT BETWEEN 6.50 BLN RUPEES TO 7 BLN RUPEES

• PROPOSED FACILITY IS ADDED EXPECTED TO BE OPERATIONAL AROUND JAN, 2027

• PLANNING FOR CAPACITY ADDITION AT ITS MANUFACTURING FACILITY WITH ESTIMATED INVESTMENT BETWEEN 6.5-7 BLN RUPEES

Further company coverage: DIVI.NS

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** Divi's Laboratories' DIVI.NS has jumped ~9% in past five sessions, set for its best week since May 2023

** Stock last up 0.6% on the day, looking to extend a five-session winning run

** Earlier this week, BofA double-upgraded the stock to "buy"

** Divi's is also the top Nifty 50 .NSEI gainer this week, followed by HDFC Bank HDBK.NS and Shriram Finance SHMF.NS

(Reporting by Varun Vyas in Bengaluru)

(([email protected]))

** Divi's Laboratories DIVI.NS up 1.6% at ~3,680 rupees, among top Nifty 50 .NSEI gainers

** BofA Securities double upgrades the drug ingredients maker's stock to "buy" from "underperform" on improving earnings outlook and attractive valuation; raises PT to 4,025 rupees

** Brokerage says Divi's is more compelling due to lower risk to earnings growth than at US-focused generic drug makers, who are susceptible to pricing uncertainties

** Expects Divi's EBITDA margins to rise to 33% by FY26 (vs 35% pre-COVID), after likely bottoming out at 27% in FY24

** Despite the upgrade, analysts' avg rating on Divi's remains "sell", per LSEG data

** Wipro WIPR.NS is the only other Nifty 50 stock with an avg "sell" rating

** DIVI trims YTD losses to ~6%; is among three stocks on 20-member Nifty pharma .NIPHARM in the red this year

(Reporting by Nandan Mandayam in Bengaluru)

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** Shares of Divi's Laboratories DIVI.NS up 3.7% to 3,788.75 rupees, steepest rise since December

** Pharma co reported ~17% rise in Q3 net profit, rev from ops up ~9%

** Jefferies says it is bullish on the co, but expects factors like improvement in pricing pressures for generics to start unfolding only post FY26; cuts FY25E EPS by 3%

** Retains "hold" with unchanged PT of 3,610 rupees

** Brokerage PhillipCapital also flags ongoing margin pressure in generics due to pricing pressures; cuts FY25 EPS by 14%, keeps rating at "neutral" with unchanged PT of 3,300 rupees

** Adds, co has potential to deliver surprise earnings in upcoming quarters

** On avg, analysts' rating equivalent to "sell", their median PT is 3,150 rupees - ~14% discount to its last close - LSEG

** Co top gainer on Nifty Pharma index .NIPHARM, up 0.9%

** Trading volume is 1.3x 30-day avg

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Nov 16 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• RECEIVED ORDER PERTAINING TO RECOVERY OF REFUND OF IGST GRANTED, ALLEGED TO BE CLAIMED ERRONEOUSLY

• CO TO FILE APPEAL AGAINST GST ORDER FOR DEMAND OF 820.4 MILLION RUPEES ALONG WITH APPLICABLE INTEREST AND PENALTY

Source text for Eikon: ID:nBSEjdYdj

Further company coverage: DIVI.NS

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** Shares of Divi's Laboratories DIVI.NS fall as much as 3% to 3,401.1 rupees, steepest intraday fall since Sept. 28

** The pharmaceutical co reported on Monday its consolidated profit fell 29.4% to 3.48 bln rupees ($41.81 million) and missed analysts' estimate of 4.41 billion rupees, as per LSEG data

** Co's margin dragged by higher expenses despite easing price pressures in U.S. markets

** DIVI trading below its 50-day and 100-day simple moving averages since mid October

** Mean rating of 21 analysts covering the stock is "sell"; median PT is 3,030 rupees - LSEG data

** Stock currently down 1.6% trimming YTD gains to 1.1%

($1 = 83.2425 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

Nov 6 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• Q2 CONSOL NET PROFIT 3.48 BILLION RUPEES; LSEG IBES EST. 4.41 BILLION RUPEES

• Q2 CONSOL REVENUE FROM OPERATIONS 19.09 BILLION RUPEES

• YEAR AGO Q2 CONSOL NET PROFIT 4.93 BILLION RUPEES, REVENUE 18.55 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: DIVI.NS

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Sept 26 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• USFDA DELEGATION VISITS COMPANY'S UNIT I AT CHOUTUPPAL, TELANGANA

Further company coverage: DIVI.NS

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Divi's Laboratories Ltd DIVI.NS:

• DIVI'S LABORATORIES LTD- MADHUSUDANA RAO DIVI TO RETIRE AS WHOLE-TIME DIRECTOR

Source text for Eikon: ID:nBSE7PDgsX

Further company coverage: DIVI.NS

** Shares of India's Divi's Laboratories DIVI.NS down 2.08% at 3,653.20 rupees

** Drugmaker's Q1 consol profit slumped 49.2% to 3.56 billion rupees ($42.9 million), while rev dropped more than 21%

EYES ON GROWTH BUT RISKS REMAIN

** Motilal Oswal (maintains "neutral", raises PT to 3,430 rupees) says co "in good stead to grow better than market", capacity addition growth lever over next 3-5 yrs

** Jefferies (retains "buy", hikes TP to 4,300 rupees from 3,610 rupees) sees sales, margin recovery improving in coming qtrs, expects growth FY25 onwards on project ramp ups

** Nuvama (downgrades to "reduce" from "hold", sets TP 3,120 rupees) flags pricing pressure and market share saturation for co, adds core business remains soft

(Reporting by Hritam Mukherjee in Bengaluru)

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Aug 14 (Reuters) - Divi's Laboratories Ltd DIVI.NS:

• Q1 CONSOL NET PROFIT 3.56 BILLION RUPEES; REFINITIV IBES EST. 4.17 BILLION RUPEES

• Q1 CONSOL REVENUE FROM OPERATIONS 17.78 BILLION RUPEES

• Q1 NET PROFIT 7.02 BILLION RUPEES, REVENUE 22.55 BILLION RUPEES

Source text for Eikon: ID:nBSEzM9HQ

Further company coverage: DIVI.NS

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** Shares of Divi's Laboratories DIVI.NS rise as much as 3.2% to 3,198 rupees, biggest pct gain since May 9

** Brokerage firm Jefferies upgrades DIVI to "buy" from "underperform;" PT raised to 3,610 rupees from 2,550 rupees

** Q4 Revenue/EBITDA declined 23%/56% YoY but was ahead of estimates - Jefferies

** Adds, co should be back to achieving mid/high teens revenue growth from Q2FY24 with EBITDA growing at a faster pace due to leverage benefits and softening input costs

** Besides, brokerage raises FY24/25 EPS estimates by 4-13%

** Analysts at Motilal Oswal, too, raise DIVI's earnings estimates for FY24/FY25 by 7%/6%

** More than 764,000 shares change hands by 11:20 a.m. IST, 1.2x 30-day avg of 614,371 shares

** Four of the 22 analysts covering the stock have a "buy" or "strong buy" rating, 10 "hold," while 8 rate it "sell" or "strong sell;" median PT is 2,865 rupees - Refinitiv IBES data

(Reporting by Ashna Teresa Britto in Bengaluru)

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