Divi's Laboratories' share price jumped over 18 percent on Monday after strong sales on volume and minimal impact due to COVID-19. The consolidated net profit surged 81 percent to Rs 492 crore for the quarter ended June 30, 2020. At 10:23 am, the stock traded 13.51 percent higher to Rs 3,161 per share on the NSE.
Divi's Laboratories' share price rallied over 18 percent on Monday after strong sales on volume and minimal impact due to COVID-19. The consolidated net profit surged 81 percent to Rs 492 crore for the quarter ended June 30, 2020. At 10:23 am, the stock traded 13.51 percent higher to Rs 3,161 per share on the NSE.
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The net profit for the corresponding quarter previous year stood at Rs 272.44 crore. Total income stood at Rs 1,747.80 crore during the quarter as against Rs 1,193.20 crore last year.
Forex gain for the June quarter amounted to Rs 5 crore as against a loss of Rs 6 crore during the corresponding quarter of the last year.
The company in its earnings stated, "While a significant part of the ongoing capex programs has been completed during the last financial year, due to the covid-19 pandemic, there has been delay in implementing the balance part of the capex programs taken up by the company due to non-availability of workmen of some contractors implementing the projects. "
"We expect to complete the capex programs by second half of the financial year," added the company.
The company's market capitalisation stood at Rs 84,263.71 crore, after Sun Pharmaceuticals (Rs 1,26,193 crore). It was one of the most active stock on NSE in terms of value with 30,21,339 shares being traded.
HSBC report raised its target price on the stock to Rs 2,755 from Rs 2,135 per share earlier. However, it retained its 'hold' rating on the stock.
It said, "Recent rally may leave limited upside from the current price. Raised FY21-23 EPS by over 14 percent to account for an improved business outlook."
First Published: IST