Divi's Labs shares rise 5% as Citi maintains 'BUY' rating, sees up to 19% upside

Divi's Labs share price surged over 5 percent on Thursday after the brokerage Citi maintained its 'Buy' rating on the counter. The analysts see up to 19 percent upside potential in the stock from the current levels.

Shares of Divi's Laboratories were up 5.58 percent to an intraday high of Rs 6,255 per share on the NSE. Later, it trimmed some of its gains to trade at Rs 6,225 apiece, up 5.07 percent. The stock has been gaining for the last four days and is up nearly 11 percent in the period.

In its latest research report, Citi said that the company has high potential to become primary supplier given the capacity addition. "Orforglipron, EliLilly’s potential best-in-class oral GLP-1, is the next addition in Divi’s pipeline. Expect more round of capex with scale up in products by 2030," it said.

The brokerage has given a target of Rs 7,050 per share, an upside potential of 19 percent from its Wednesday's closing at Rs 5,924.5 per share.

The analysts at Citi expect Divi's to earn over $800 million in GLP-1 revenue by 2030.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.