Divis Lab Intraday Buy Call
Karvy Stock Broking Limited has maintained ‘Buy’ rating on Divis Laboratories Ltd stock with an intraday target of Rs 1530.
According to Karvy, day traders can purchase the stock between Rs 1440-1450 with a strict stop loss of Rs 1400. The stock pricing becomes more attractive, and reach above Rs 1540, if the stock market remains on positive track.
Shares of the company, on Tuesday (August 04), closed at Rs 1446.85 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 39315. Current EPS and PE Ratio stood at 59.14 and 24.47 respectively. The share price has seen a 52-week high of Rs 1930 and a low of Rs 990.25 on BSE.
The outlook for the stock is very strong, and it will really outperform the stock market today.
The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.
Divis Laboratories reported a substantial increase in standalone net profit for the three months period ended June 2008. During the quarter, the company’s profit surged 43.40% to Rs 964.80 million from Rs 672.80 million during the same quarter last year.
The company posted earnings of Rs 14.92 per share during the quarter, registering 71.37% decline over prior year period.
Net sales for the quarter arose 16.66% to Rs 2,660.70 million, whereas total income for the quarter surged 17.17% to Rs 2,712.60 million.
During the quarter, the interest cost decreased 41.84% to Rs 19.60 million while depreciation cost rose 24.62% to Rs 107.30 million over previous year period.
Divi’s Laboratories has earned a PAT of Rs 94 crores on a consolidated basis for the quarter ending 30th June, 2008 on a total income of Rs.269 crores., reflecting a growth of 45% over the corresponding quarter in the previous year.
During the quarter, the company has provided for losses on foreign exchange fluctuations and MTM to the extent of Rs 8.99 crores. For the corresponding quarter of last year, it earned a PAT of Rs.65 crores on a total income of Rs 230 crores during the last year.
Divis Laboratories Ltd announced that Compensation Committee of Board of Directors, at its meeting held on July 26, 2008, allotted 51175 equity shares of Rs 2/- each to the employees under ESOP 2006 Scheme of the Company.
Consequent to the above allotment, the paid up share capital of the Company will get increased to 64724125 equity shares from 64672950 equity shares of face value of Rs 2/- each.
Moreover, the company informed that the Share Transfer Books of the Company will remain closed from June 28, 2008 to July 04, 2008 (both days inclusive) for the purpose of the Annual General Meeting of the company scheduled to be held on August 16, 2008 and payment of dividend, if declared at the ensuing Annual General Meeting.
Other stocks from the same sector that looks good for short-term as well as long-term trading includes Dr. Reddy, Aurbindo Pharma, Dabur Pharma and Glenmark Pharma.