Buy Divi's Laboratories, target price Rs 4060: ICICI Securities

ICICI Securities has buy call on Divi's Laboratories with a target price of Rs 4060. The current market price of Divi's Laboratories Ltd. is Rs 3753.35.

Divi's Laboratories Ltd., incorporated in the year 1990, is a Large Cap company (having a market cap of Rs 100939.12 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1720.76 Crore, down -2.39 % from last quarter Total Income of Rs 1762.94 Crore and up 19.67 % from last year same quarter Total Income of Rs 1437.93 Crore. Company reported net profit after tax of Rs 470.62 Crore in latest quarter.


Investment Rationale
Cusp of breakout above last three months range (3914-3153) and a faster retracement of the last falling segment

Promoter/FII Holdings
Promoters held 62.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 12.8 per cent, DIIs 7.8 per cent and public and other 16.7 per cent.