Divis Laboratories shares hit record high today, here's why
Divis Laboratories shares were trading at Rs 6,737, reflecting a 3.95% increase.
- May 26, 2025,
- Updated May 26, 2025 4:13 PM IST
Shares of pharmaceutical firm Divis Laboratories hit their record high rising by as much as 4.37% to reach an all-time high of Rs 6,764 per share. As of noon, Divis Laboratories shares were trading at ?6,737, reflecting a 3.95% increase. In contrast, the BSE Sensex saw a milder rise, gaining 0.57% to settle at 82,189.23.
Later, the stock ended 3.91% higher at Rs 6734.10 on BSE. Market cap of the firm rose to Rs 1.78 lakh crore.
The surge in share price follows the announcement of a long-term manufacturing and supply agreement between Divi's Laboratories and a major global pharmaceutical company. As part of this agreement, Divi’s Laboratories will handle the manufacturing and supply of advanced intermediates under specific commercial terms established by both parties.
The pharmaceutical company anticipates a significant boost in revenue from this long-term partnership. Additionally, the investment required for enhancing manufacturing capacity under this agreement is projected to be between ?650-750 crore, funded in phases through a capacity reservation advance from the customer, as outlined in their contract.
“In accordance with the confidentiality agreement, we are unable to disclose the customer's identity or any quantitative details related to the agreement,” Divi’s Laboratories stated.
In its latest financial update, the company reported a remarkable 23% year-on-year surge in net profit, now reaching ?662 crore compared to Rs 538 crore from the previous year. Revenue from operations also saw a 12% increase, climbing to ?2,585 crore from Rs 2,303 crore the prior year.
Regarding shareholder returns, the company’s board has recommended a final dividend of Rs 30 per share with a face value of Rs 2 each for FY25. Shareholders can expect the dividend payment on July 25, 2025, with this date established as the record date.
Founded in 1990 and headquartered in Hyderabad, India, Divi's Laboratories has established itself as a leading name in the global pharmaceutical industry. The company is acclaimed for its strong emphasis on research and manufacturing, excelling in the production and export of active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals.
Shares of pharmaceutical firm Divis Laboratories hit their record high rising by as much as 4.37% to reach an all-time high of Rs 6,764 per share. As of noon, Divis Laboratories shares were trading at ?6,737, reflecting a 3.95% increase. In contrast, the BSE Sensex saw a milder rise, gaining 0.57% to settle at 82,189.23.
Later, the stock ended 3.91% higher at Rs 6734.10 on BSE. Market cap of the firm rose to Rs 1.78 lakh crore.
The surge in share price follows the announcement of a long-term manufacturing and supply agreement between Divi's Laboratories and a major global pharmaceutical company. As part of this agreement, Divi’s Laboratories will handle the manufacturing and supply of advanced intermediates under specific commercial terms established by both parties.
The pharmaceutical company anticipates a significant boost in revenue from this long-term partnership. Additionally, the investment required for enhancing manufacturing capacity under this agreement is projected to be between ?650-750 crore, funded in phases through a capacity reservation advance from the customer, as outlined in their contract.
“In accordance with the confidentiality agreement, we are unable to disclose the customer's identity or any quantitative details related to the agreement,” Divi’s Laboratories stated.
In its latest financial update, the company reported a remarkable 23% year-on-year surge in net profit, now reaching ?662 crore compared to Rs 538 crore from the previous year. Revenue from operations also saw a 12% increase, climbing to ?2,585 crore from Rs 2,303 crore the prior year.
Regarding shareholder returns, the company’s board has recommended a final dividend of Rs 30 per share with a face value of Rs 2 each for FY25. Shareholders can expect the dividend payment on July 25, 2025, with this date established as the record date.
Founded in 1990 and headquartered in Hyderabad, India, Divi's Laboratories has established itself as a leading name in the global pharmaceutical industry. The company is acclaimed for its strong emphasis on research and manufacturing, excelling in the production and export of active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals.