Divi's Labs stock tanks 12% on big miss in Q3; near-term trend 'bearish'

Analysts' average price target of Rs 3,862, however, indicates significant upside. The near-term trend remains bearish

Underwhelming October-December quarter (Q3FY23) numbers led to a major sell-off in the Divi’s Laboratories (Divi’s) stock. Revenue, profit, and margin -- all witnessed sharp reductions and were well below Street estimates. Analysts were already negative on the stock but the results were much poorer than the written-down estimates.

Divi’s consolidated net profit dropped 66 per cent to Rs 307 crore in Q3FY23, against Rs 902 crore in the year-ago quarter. Revenue from operations fell 31 per cent to Rs 1,707 crore in the quarter under review, against Rs 2,493 crore a year ago. Divi’s reported Ebitda of Rs 408 crore