This is the first and the only target for Divi’s Laboratories on the street, that is higher than ₹10,000 per share.
Macquarie believes the peptide CDMO market is poised for strong medium-term growth, supported by accelerating demand. The brokerage expects the market to expand from nearly $4 billion in 2025 to around $20 billion-$25 billion by 2030, driven by increasing adoption of GLP-1 and other peptide therapies, higher active pharmaceutical ingredient (API) requirements, and a growing pipeline of Phase 3 peptide assets.
The brokerage said Divi’s integrated manufacturing capabilities and scale position it well to capitalise on this opportunity and support its goal of becoming a leader in peptide CDMO manufacturing.
Macquarie also raised its earnings estimates and rolled them forward to their June 2028 EBITDA estimates, thereby leading to a higher target price.
According to the brokerage, Divi’s has built a vertically integrated peptide manufacturing platform spanning building blocks, reagents and resins, which offers cost and quality advantages over peers.
The company currently has 20,000-litre solid-phase peptide synthesis capacity and plans to scale it further with an industry-leading 18,600-litre liquid-phase peptide synthesis (LPPS) reactor.
Macquarie estimates the existing solid-phase peptide synthesis capacity alone could support more than $550 million in revenue potential, with additional upside from liquid-phase peptide synthesis.
According to Bloomberg analyst recommendations, 16 of the 33 analysts covering Divi’s Laboratories have a ‘Buy’ rating on the stock, while seven recommend ‘Hold’ and 10 have a ‘Sell’ rating.
Shares of Divi’s Laboratories are trading 2.7% higher on Friday at ₹8,046.5. The stock has extended its year-to-date gains to 27%. The company will be reporting its June quarter results on Saturday, August 1.
