India’s best-performing stock is seeing a wave of optimistic calls
Indian API exporters have been increasing their share of the U.S. market at the expense of Europe and China-based rivals
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Some analysts are turning even more bullish on India’s best-performing large-cap stock in 2020.
Share Via Some analysts are turning even more bullish on India’s best-performing large-cap stock in 2020.
In just about two weeks, at least four brokerages have raised their price targets on the shares of Divi’s Laboratories Ltd. one of the top producers of active pharmaceutical ingredients with Jefferies India Pvt.’s estimate of an almost 20% gain over the next 12 months being the most bullish in data compiled by Bloomberg.
Some analysts are turning even more bullish on India’s best-performing large-cap stock in 2020. In just about two weeks, at least four brokerages have raised their price targets on the shares of Divi’s Laboratories Ltd. one of the top producers of active pharmaceutical ingredients with Jefferies India Pvt.’s estimate of an almost 20% gain over the next 12 months being the most bullish in data compiled by Bloomberg. The optimism is stemming from the company’s capacity-expansion plans and potential to win more business as India cuts its reliance on Chinese suppliers. ”Capital discipline has been one of the hallmarks of this company,” said Siddhant Khandekar, an analyst at ICICIdirect.com. “Divi’s is known for optimum utilization of capital. There must be tangible orders on hand and that is why they are spending.”
Buy
The company s second-quarter earnings topped estimates in early November. Divi s has started building a production facility near Kakinada in India s Andhra Pradesh state, it said in an exchange filing the following month.
Overall in absolute terms, analysts average 12-month target price for Divi s stock has risen about Rs 134 in the past four weeks, the biggest increase among 10 companies on the MSCI India Health Care Index. The stock currently has 17 buy ratings, two holds and three sell recommendations, data compiled by Bloomberg show. The stock could carry its momentum into this year, said Tushar Manudhane, an analyst at Motilal Oswal Financial Services Ltd. in Mumbai. They have a good track record of using new capacity efficiently.
Some analysts are turning even more bullish on India’s best-performing large-cap stock in 2020.
In just about two weeks, at least four brokerages have raised their price targets on the shares of Divi’s Laboratories Ltd. one of the top producers of active pharmaceutical ingredients with Jefferies India Pvt.’s estimate of an almost 20% gain over the next 12 months being the most bullish in data compiled by Bloomberg.
The optimism is stemming from the company’s capacity-expansion plans and potential to win more business as India cuts its reliance on Chinese suppliers. Capital discipline has been one of the hallmarks of this company,” said Siddhant Khandekar, an analyst at ICICIdirect.com. “Divi’s is known for optimum utilization of capital. There must be tangible orders on hand and that is why they are spending.”