Buy Divi's Laboratories, target price Rs 2912: ICICI Direct

ICICI Direct has buy call on Divi's Laboratories with a target price of Rs 2912. The current market price of Divi's Laboratories is Rs 2882.6. Time period given by analyst is Intra Day when Divi's Laboratories price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 2847.

Divi's Laboratories, incorporated in the year 1990, is a Large Cap company (having a market cap of Rs 76314.25 Crore) operating in Pharmaceuticals sector.

Divi's Laboratories key Products/Revenue Segments include Pharmaceuticals, Scrap, Export Incentives and Contract Fees for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1821.93 Crore, down -5.82 % from last quarter Total Income of Rs 1934.62 Crore and down -27.41 % from last year same quarter Total Income of Rs 2509.86 Crore. Company has reported net profit after tax of Rs 306.80 Crore in latest quarter.

The company’s top management includes Dr.Ramesh B V Nimmagadda, Dr.S Ganapaty, Prof.Sunaina Singh, Mr.R Ranga Rao, Dr.G Suresh Kumar, Mr.K V K Seshavataram, Mr.N V Ramana, Mr.Madhusudana Rao Divi, Ms.Nilima Prasad Divi, Dr.Kiran S Divi, Dr.Murali K Divi, Mr.K V Chowdary. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 27 Crore shares outstanding.

Investment Rationale
Price breaking above last three weeks range and sustaining above 20 day EMA signaling continuation of the pullback in coming sessions.