Divi’s Labs off lows as CFO clarifies on accounting rumours

MUMBAI: Shares of Divi's Laboratories pared some of the intraday losses after the management clarified that rumours-related accounting practices were false. The stock has been under pressure in trade today on rumours of some accounting malpractices.

“The company is in a healthy and robust financial state. It has cash reserves of Rs 500 crore currently after paying dividend,” said Kishore Babu, Director-Finance, Divi's Laboratories.

At 01:40 pm, the stock was at Rs 1,130, down 4.63 per cent on, the BSE. It touched a high of Rs 1,191.90 and a low of Rs 1,096 in trade so far.

According to Ashwani Gujral, Fund Manager, ashwanigujral.com, the stock is likely to remain weak after the news. He is bearish on the stock and is of the view that traders can go short on the stock with stoploss of Rs 1,140 for a target of Rs 1,050.