Buy Divi's Laboratories, target price Rs 3576: ICICI Direct

ICICI Direct has buy call on Divi's Laboratories with a target price of Rs 3576. The current market price of Divi's Laboratories is Rs 3566.1. 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 3514.

Divi's Laboratories, incorporated in the year 1990, is a Large Cap company (having a market cap of Rs 94817.41 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 2016.92 Crore, up 10.70 % from last quarter Total Income of Rs 1821.93 Crore and down -21.55 % from last year same quarter Total Income of Rs 2570.83 Crore. Company has reported net profit after tax of Rs 320.97 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 31-03-2023, the company has a total of 27 Crore shares outstanding.

Investment Rationale
Price rebounding after taking 50% retracement support of recent upmove signaling further upsides in coming sessions.

Promoter/FII Holdings
Promoters held 51.94 per cent stake in the company as of 31-Mar-2023, while FIIs owned 14.67 per cent, DIIs 20.89 per cent.