Analysts' average price target of Rs 3,862, however, indicates significant upside. The near-term trend remains bearish
In Q3FY23, Divi's Lab reported a 66 per cent year-on-year decline in its consolidated net profit at Rs 306.80 crore, on higher than expected in fall in revenue
A portfolio of richly valued RoE stocks is expected to outperform the broader market over the longer term.
Divi's Laboratories on Monday said its consolidated net profit declined by 18 per cent to Rs 494 crore in the second quarter of the current financial year. The drug firm had reported a net profit of Rs 606 crore in the July-September period of last fiscal. Revenue from operations declined to Rs 1,854 crore in the September quarter as against Rs 1,987 crore in the year-ago period. Shares of the company on Monday ended 8.63 per cent at Rs 3,422 apiece on the BSE.
Brokerages give add, accumulate or buy ratings given the company's growth and track record
The analysis is based on a common sample of 76 companies from the Nifty 100 index
Pfizer's oral Covid drug, weak sales of generics, and valuations may cap upsides
Supply of Molnupiravir to Merck was a key near-term trigger for the stock
Revenue growth prospects, however, remain strong driven by multiple factors
Ongoing capacity additions, market share gains, and new launches are key triggers
Shares of Divi's Laboratories on Monday gained 4 per cent after the company reported a 29.30 per cent rise in its consolidated net profit for the quarter ended March 31, 2021
Drug firm Divi's Laboratories on Saturday reported a 29.30 percent rise in its consolidated net profit to Rs 502.02 crore for the quarter ended March 31, 2021, on account of robust sales
However, the company's earnings showed strong traction in 2020-21 due to a surge in demand for bulk drugs caused by the pandemic
Divi's Laboratories Q3 results: While top line growth was strong, margin performance stood out in the December quarter
On the other hand, PSU stocks and banks have been laggards - with ONGC, Indian Oil, IndusInd Bank, and Coal India delivering the worst returns.
According to the fund's profile, its top holding as of July 31 was drugmaker Divi's Laboratories Ltd., which has gained more than 70% in 2020
Shares of Zee Entertainment Enterprises fell 3.7 per cent and that of Bharti Infratel ended flat. The two companies will be removed from the bluechip index
Over Rs 650-cr selling in Zee, Infratel
The near term upside, however, is limited given the sharp stock price run up
For the quarter ended June 2020, Divi's Lab reported a net profit of Rs 492.06 crore on account of robust sales.