Can Divi's maintain its premium valuation amid headwinds?
- Business
Financial Gazette- 0
- 6 minutes read
Synopsis
Indian pharma companies have been struggling to maintain margins because of strong headwinds. Due to increased competition, pharma companies are experiencing price erosion in the market, resulting in sluggish growth. While price erosion is not the only issue at hand, China’s lockdown that caused supply chain disruption, the rise in raw material prices, and the Russia-Ukraine war have raised packaging costs.
Years of getting premium valuations, pharma companies’ stocks are facing reality checks. Divi’s Laboratories was able to manage the business challenges. But will valuation headwinds finally hit the stock now or will its business model be able to deliver growth that will help the stock maintain its premium?Indian pharma companies have been struggling to maintain margins because of strong headwinds. Due to increased competition, pharma companies
BY
Gaurav Jain & Parimal Ade
ET CONTRIBUTORS
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
- SAVE
- COMMENT
Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories
& personalised newsletters
Login Now
Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &
in-depth stock reports
Subscribe Now
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
-
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
-
Clean experience with
Minimal Ads -
Comment & Engage with ET Prime community -
Exclusive invites to Virtual Events with Industry Leaders -
A trusted team of Journalists & Analysts who can best filter signal from noise
