Macquarie initiates coverage on Divi’s Labs, 3 CRDMO firms with up to 40% upside potential

The global brokerage firm highlights that Indian CDMO companies trade at a 2-year forward EV/EBITDA of 20x, compared to 16x for regional and 15x for global peers. It justifies this premium valuation, citing the companies’ projected 2x EBITDA growth CAGR and 2x ROIC over the next three years, outperforming both regional and global counterparts.