Shares of Divi’s Laboratories Ltd. (NSE:DIVISLAB, Financial), a leading Indian manufacturer of complex active pharmaceutical ingredients, declined in the fourth quarter. The stock fell due to a surprise FDA inspection of Divi’s manufacturing facilities resulting in unfavorable observations and regulatory headwinds for the company. We retain conviction in Divi’s due to its industry-leading profitability and long-term relationships with major pharma clients and believe it is well positioned to sustain low-to-mid-teens earnings growth for the next three-to-five years. (Anuj Aggarwal)
From Baron Emerging Markets Fund fourth quarter 2016 commentary.
