Buy Divis Lab With Stop Loss Of Rs 578: Karvy

DivisKarvy Stock Broking Limited has maintained 'Buy' rating on Divis Laboratories Limited stock to achieve a target of Rs 630 in 2-3 trading sessions.

According to Karvy, interested traders can buy the stock between Rs 590-595 with a strict stop loss of Rs 578.

The shares of the bank on Monday, (Nov 23), closed at Rs 599.85 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 683.98 and a low of Rs 382.53 on BSE.

Current EPS and P/E of the stock stood at 25.70 & 23.26 respectively.

Divis Lab has declared that Compensation Committee of Board of Directors at its meeting held on October 30, 2009 alloted 187550 equity shares worth Rs 2/- each under the company's ESOP 2006 Scheme.

Following the above allocation, the company's paid up share capital will get surged to 130744545 equity shares as against 130556995 equity shares having face value of Rs 2 per share.

Divis Laboratories reported a decline of 37.37% in its consolidated net profit for the three month period ended September 30, 2009.

The company recorded a consolidated profit of Rs 847.90 million as compared to profit of Rs 1,353.90 million for the same period of last year.

On a standalone basis, Divis Laboratories registered a profit of Rs 864.40 million, a fall of 37.22%.

During the period under review, the company's total income stood at Rs 2,296.30 million, a slump of 31.73% over the prior year period.