Divi's Laboratories share price hit an all-time high in trade today after the pharma firm reported better-than-expected earnings for the quarter ended June. Share price of Divi's Laboratories climbed 16% to a fresh high of Rs 3,228 against previous close of Rs 2,748 on BSE.
The large cap share has gained 19.03% in last 3 days. The stock opened with a gain of 9.98% at Rs 3,062 today.
Divi's Laboratories share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the pharma firm rose to Rs 84,312 crore. In three years, the share has gained 409%.
The stock has climbed 72.44% since the beginning of this year and risen 91.13% in one year.
In a month, the share has clocked 44.50% gain. Total 1.25 lakh shares changed hands amounting to turnover of Rs 39.70 crore. The firm reported consolidated net profit of Rs 492.06 crore in June quarter 2020 on robust sales.
The firm logged a profit of Rs 272.44 crore in the year-ago same period.
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.
Meanwhile, Motilal Oswal has given a buy rating to Divi's Laboratories with a target price of Rs 3350. The brokerage has raised EPS estimate by 16%/13% for FY21/FY22E to factor favorable demand for DIVI's APIs, margin enhancement owing to an increase in the inhouse manufacturing of intermediates, and additional revenue from new capex.
It expects a 33% earnings CAGR over FY20-22E, led by increased business prospects from Custom Synthesis and Generics as well as 600 bps margin expansion on better operating leverage.
The brokerage values DIVI'S at 35x 12M forward earnings to arrive at TP of INR 3,350. The pharma firm is expcted to see promising demand prospects and multiple levers in place for DIVI (chemistry skill sets, efficient manufacturing capability, and considerable scale of operations to gain market share in focus products).
Meanwhile, Indian markets rose today extending last week's gains amid mixed global equities. Sensex was trading 279 points higher at 38,301 and Nifty gained 84 points to 11,299. Last week, Sensex rose 433 points or 1.15%, while Nifty gained 140 points or 1.27%.