Divi's Laboratories - Limited triggers in the near term - Kotak

Divi's reported weak earnings which were significantly lower than estimates. Sales declined by 8% yoy due to higher base and lower utilization driven by inspections/capacity expansions. While capacity expansion had been largely completed, the commissioning/inspection of the new units are expected in 2HFY14 - we expect limited triggers in the near term.

Maintain REDUCE rating with TP at Rs1,060 (from Rs1,140 earlier) - FY2014/15E EPS cut by 12-13%.

Source : Equity Bulls

Keywords