The pharma company reported 80.61 percent rise in consolidated net profit at Rs 492.06 crore for June quarter 2020 mainly on account of robust sales.
Divis Laboratories share price surged over 12 percent in the morning trade on August 10 after the company announced its June quarter results on August 8.
The pharma company reported 80.61 percent rise in consolidated net profit at Rs 492.06 crore for June quarter 2020 mainly on account of robust sales. It logged a profit of Rs 272.44 crore in the year-ago same period, Divi's Laboratories said in a filing to BSE.
Total income stood at Rs 1,747.80 crore during the quarter under review as against Rs 1,193.20 crore in April-June 2019-20, it added.
"The company has been able to have near-normal operations during the quarter and there was minimal impact due to COVID-19 pandemic," Divi's Laboratories said.
The stock price jumped over 92 percent in the last 1 year and was trading at Rs 3,135.95, up Rs 351.70, or 12.63 percent. It has touched a 52-week high of Rs 3,201.85.
HSBC has retained its hold rating on the stock and has raised target to Rs 2,755 from Rs 2,135 per share. The firm is of the view that strong beat in Q1 is due to robust sales on volume growth and better realisations. Business outlook remains steady on industry tailwinds. It has raised FY21-23 EPS by over 14 percent on account for an improved business outlook.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the company has low debt with zero promoter pledge. FII / FPI or Institutions increasing their shareholding and the stock price is showing strong momentum: price above short, medium and long term moving averages.
Moneycontrol technical rating is very bullish with moving averages being bearish and technical indicators being bullish.
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