Pharma Stocks Rally: Divi’s, Sai Life, Laurus and Gland Pharma Surge Over 9% as Nifty Pharma Hits Record High

Pharmaceutical shares saw strong buying on Monday, with companies operating in CDMO and contract manufacturing leading the gains. Divi's Laboratories, Laurus Labs, Sai Life Sciences, Gland Pharma, Mankind Pharma and Glenmark Pharmaceuticals advanced between 5% and 9%. 

Divi's, Laurus, Sai Life and Glenmark also touched record highs. Over the 12 trading sessions since 23 October, these stocks gained 18-25%, while the Nifty Pharma index advanced 15.4%. 

Nifty Pharma Reaches Record High 

The Nifty Pharma index touched 29,224.85 during intraday trading, gaining 3%. It also recorded gains for six consecutive sessions, rising 8% against a 6% increase in the Nifty 50. 

At 11:24 AM, the pharma index was up 1.55%, while the Nifty 50 traded 0.30% lower. 

Brokerages Raise Targets for Pharma Stocks 

Jefferies maintained its Buy rating on Divi's Laboratories with a target of ₹12,550. Its Q2 CDMO revenue grew 50%, while generics revenue increased 18%. 

For Sai Life Sciences, Jefferies raised its target to ₹2,050 and retained Buy. The brokerage cited growth in CRO and CDMO operations, alongside progress in its clinical pipeline and capacity expansion. 

Laurus Labs Sees Higher CDMO Contribution 

Choice Institutional Equities retained its ADD rating on Laurus Labs and revised its target price to ₹2,500. It expects CDMO revenue contribution to rise from 30% in FY26 to 50% by FY29. 

The brokerage also raised its FY27 and FY28 estimates by 19.9% and 21.3%, respectively, citing the company's improving business mix and margin outlook. 

Gland Pharma Announces Expansion Plans 

Gland Pharma reported a strong Q2 performance, supported by higher volumes. Management maintained its positive full-year EBITDA guidance and announced planned capital expenditure of over ₹3,000 crore across five years. 

The company is targeting 18-20% CAGR over the next three to four years. It also plans to increase GLP-1 cartridge capacity from 40 million to 140 million. 

Read More: Divi’s Laboratories Share Price Surges Over 5% After Q2 FY27 Earnings Results; PAT Rises 64% to ₹1,127 Crore! 

Conclusion 

Strong quarterly results, capacity expansion plans and higher CDMO activity kept pharmaceutical stocks in focus, while the Nifty Pharma index recorded a fresh high. 

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