Divi’s Labs Surges 6% On Q4 Beat; SEBI RA Thoviti Brahmachary Predicts Fresh Upside If ₹6,410 Breaks

Published : May 19, 2025, 12:00 PM ISTUpdated : May 19, 2025, 03:18 PM IST
https://stocktwits.com/news-articles/markets/equity/divis-labs-rallies-on-earnings-sebi-ra-brahmachary-predicts-fresh-upside/ch0chC1RbFW

Synopsis

Strong earnings and bullish technical indicators lifted Divi’s Labs near record highs. Analyst recommends tracking for a breakout as retail interest grows.

Divi’s Laboratories shares surged 6% on Monday, trading near its all-time high as investors cheered its robust fourth-quarter earnings (Q4 FY25).

The pharma company reported a 26% year-on-year increase in consolidated net profit to ₹667 crore and a 12% rise in revenue to ₹2,536 crore. 

These results were accompanied by healthy margins and a recommendation for a  ₹30 dividend, further boosting investor sentiment.

It also announced that commercial operations have commenced at its Unit III greenfield project, which is expected to support future growth via increased capacity and backward integration.

From a technical standpoint, SEBI-registered analyst Thoviti Brahmachary highlights that Divis Laboratories is currently trading near a key pivot level on the weekly chart, with the Relative Strength Index (RSI) indicating a shift in momentum. 

Brahmachary suggests monitoring the stock for a breakout above ₹6,410, which could set the stage for a potential move toward ₹7,500 by the end of Q3 FY26. 

He recommends maintaining a stop loss at ₹5,900 and considers Divis Labs a promising long-term investment.

Brokerages remain optimistic, pointing to growth drivers such as recent capex, operating leverage, and the company's presence in high-potential therapeutic segments like GLP-1s.

Management has reiterated its focus on maintaining double-digit revenue growth going forward.

Data on Stocktwits shows that retail sentiment also remains ‘bullish’ on this counter.

Divi’s Laboratories’ shares gained 9% year-to-date (YTD).

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