Divis Laboratories, Gland Pharma, Sai Life Sciences shares hit 52-week highs; here's why 

Shares of pharma sector firms such as Divis Laboratories, Gland Pharma and Sai Life Sciences surged to their 52 week highs on Monday. The rally in the pharma stocks came after Divis Laboratories reported Q2 earnings.

Divis Laboratories shares hit a 52 week high of Rs 11,818 against the previous close of Rs 11,080. Market cap of the pharma firm rose to Rs 3.07 lakh crore. The stock rose 7% intra day. In two sessions, the pharma stock has gained 15% after Q2 earnings were announced on November 7.

In Q2 earnings, the firm reported a 64% rise in Q2 net profit to Rs 1127 crore.

The earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 76% to Rs 1,566 crore against Rs 888 crore in the year-ago period. The EBITDA margin expanded to 42.6% in Q2 from 32.7% a year ago.

Buoyed by the up move in Divis Labs shares, other pharma shares also rallied today.

Gland Pharma stock also hit its 52-week high on the back of Q2 earnings. Gland Pharma shares rose 8% to Rs 3372 today against the previous close of Rs 3126.15 Market cap of the firm rose to Rs 55,227 crore.

Gland Pharma reported a 58.2% year-on-year rise in net profit to Rs 291 crore in Q2 compared with Rs 184 crore in the corresponding period last year.
Revenue rose 23.3% to Rs 1,834 crore in Q2 from Rs 1,487 crore in the year-ago quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 54.1% to Rs 484 crore in Q2 from Rs 314 crore a year ago. EBITDA margin expanded to 26.4% from 21.1% in the corresponding quarter last year. The company's quarterly adjusted EBITDA rose 50% year-on-year, with the adjusted EBITDA margin at 27%. The profit after tax (PAT) margin increased by approximately 350 basis points year-on-year.

Sai Life Sciences shares also rallied to their 52-week high. The pharma stock rose 9% to Rs 1697.70. Market cap of the firm rose to Rs 38,472 crore. Market cap of the firm rose to Rs 38,472 crore.