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Entry Price

3,820.00

Target

4,440.00

Recommend Date

06-02-2021

Return

16.23 %
BUY

Date : 06-02-2021

Divi’s reported a strong Q3FY21 performance. Revenues grew 21.9% YoY to | 1701 crore (I-direct estimate: | 1770 crore). Generic segment grew 21% YoY to | 876 crore. Custom synthesis grew 18.9% YoY to | 681 crore. Carotenoids grew 45.0% YoY to | 145 crore. EBITDA margins expanded 525 bps YoY to 40.6% (I-direct estimates of 39.5%) due to significantly better gross margin performance (up 824 bps YoY to 69.0%) partially offset by higher staff costs. Subsequently, EBITDA grew 39.9% YoY to | 691 crore (Idirect estimate: | 699 crore). PAT grew 31.1% YoY to | 471 crore (I-direct estimate: | 492 crore) in-line with strong operational performance.