Shares of Divis Laboratories surged more than 4% today despite market weakness

Murli K Divi, promoter of the company, is India’s 15th richest person

On December 21, the market closed in the red. The S&P BSE Sensex closed at 61,067.24, down 1%. Among sectors, Healthcare was the clear outperformer, while Power and Telecom were the worst performers. Regarding stock-specific action, Divis Laboratories Ltd was among the top gainers.

The shares of Divi’s Laboratories Ltd closed trading at Rs 3500.15 with a 4.46% gain for the day. The stock opened at Rs 3350.80 and made an intraday high and low of Rs 3531.65 and Rs 3350, respectively.

Divi’s Laboratories Limited is one of the leading pharmaceutical companies in the world, manufacturing Active Pharmaceutical Ingredients (APIs), Intermediates and Nutraceuticals. It has two manufacturing plants, one in Visakhapatnam and the other in Hyderabad.

The company has a strong presence in the international market. About 88% of the company’s revenue comes from its export business. The company has a core competency in custom synthesis under contract manufacturing of APIs. Pfizer, Merck, and GSK are a few of its clients.

About FY22 financial performance, the company’s total revenue stood at Rs 8993.85 crore, a 31% increase from Rs 6862 crore in FY21. FY22 net profit also improved by 50.84% from Rs 1954 crore in FY21 to Rs 2948 crore.

Over the past decade, it has constantly been able to deliver high ROE and ROCE numbers. Currently, as per the FY22 period ending, the company has an ROE and ROCE of 28.2% and 35.1%, respectively.

About the shareholding pattern, 51.94% of the stake is owned by the promoters, 16.52% by FIIs, 19.98% by DIIs, and the rest 11.56% by non-institutional investors. Murli K Divi, promoter of Divi’s Laboratories Ltd, is India’s 15th richest person.

The company has a market capitalisation of Rs 92917 crore. The scrip has a 52-week high and low of Rs 4707 and Rs 3197, respectively.