"We are delighted investors are selling Divi's Labs. We are buying it daily": Saurabh Mukherjea

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Jun 19, 2022.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

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    "We are delighted that investors are selling Divi's Labs. We are buying it on a daily basis": Saurabh Mukherjea has explained that no other Indian Pharma Co comes close to Divi's and that investors are making a big mistake by dumping it. The stock should be bought aggressively, he advised.

    Divi's has been a great multibagger stock in the past. In the last 5 years, it has given a return of 400+%. However, it has been out of favour in the last one year and has lost nearly 25% of the market capitalisation.

    [​IMG]

    Saurabh Mukherjea explained that though the the Q4 and FY22 earnings were firecracker earnings, experts have expressed concern that one of the reasons they had such stellar earnings in FY22 was because of Molnupiravir and that being a Covid drug, demand could ebb off going forward.

    However, Divi’s was not built on one drug and will sign up for plenty of other products. The relationship that Divi’s has with the top six pharma companies in the world is unrivalled in Indian Pharma, he stated.

    He also explained that no other Indian pharma company has that strength of relationship with firms like Pfizer, Glaxo, Mylan. Divi’s will have a power packed pipeline given especially what is happening in China. China makes 10 to 20 times more API than India does. There is a clear directive from the highest levels of American government to the American pharma companies to source more from India, less from China and if there is one company that will make money on that redirection of API sourcing, that will be Divi’s.

    "As you can understand, we are delighted about the fact that people sold down Divi’s on the back of this sort of brokerage research. We wanted to capitalise on that. There is a clear restructuring of global API sourcing lines against China in favour of India and our deduction from that is in favour of Divi’s and therefore we remain buyers of Divi’s on a daily basis," Saurabh concluded.

     
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