stock market today Shares of Divi’s Lab rose after the announcement of strong Divi’s Laboratories Q3 FY2021-22 results. Following weakness in the Indian stock market on disappointing US inflation data, Divi’s Lab share price today Flat open and move to intraday low 4,240.05 per share level. But, after the announcement of strong Q3FY22 results, Divi’s Lab shares attracted the bulls’ interest and made losses in morning deals. Pharma stock climbs to its intraday high 4,474 each level, which is about 4 percent higher than yesterday’s closing price 4,313 on NSE.
According to stock market experts, there is strong support for the share price of Divi’s Lab. 4200 and this support is expected to remain in place. He added that Divi’s Lab Q3 results are better than market expectations and its Q4 results are expected to be better as the company can benefit from US restrictions on contract research and manufacturing imports from Chinese companies. He added that the company is benefiting from the increase in demand for APIs in the international market as it also has a strong API business model.
Speaking on the reasons for the increase in the share price of Divi’s Lab; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “The company has reported strong Q3 results beating the market estimates by a huge margin. It reported a year-on-year growth of nearly 92 per cent in net profit. The stock, however, is expected to deliver even better numbers in Q4 FY22 as it will be one of the major beneficiaries of the recent US embargo on contract research and manufacturing imports from Chinese companies. More clarity on the guidance and margins will become clear after the company’s commentary results. Hence, this growth may not last long as the bulls expect profit-booking before the company’s commentary.”
advising positional investors to add Divi’s Lab shares to their portfolio; Sumeet Bagadiya, Executive Director, Choice Broking said, “Divi’s Lab stocks have strong support 4200 while it has strong handicap The stock has devalued close to 20 percent after climbing to its lifetime high of 4600. 5425.10 level in October 2021. it can go up from 4500 4600 level each in the next 15 to 20 days.” However, he advised investors to keep tight stop losses below 4200 levels.
Avinash Gorakshakar of Profitmart, advising positional investors to wait for the company’s commentary, said that Divi’s Lab is a debt-free company and its commentary is also expected to boost Bull’s confidence. But, a positional investor should wait for the commentary as the stock could go up by 15 to 20 per cent post-commentary in the next 6-9 months.
Divi’s Lab Q3FY22 Results
The pharma company has reported a net profit of 902.20 crore in Q3FY22, which is almost 92 per cent higher than its net profit 470.60 crore in Q3FY22. The company’s revenue also increased by 46.50 percent during this period. 2493.20 crores. The company’s margins have improved by 3.40 per cent while its EBITDA has grown by 58.7 per cent in the same period.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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