Saturday, November 6, 2021

DIVISLAB Q2 PAT UP 17% | STOCK OUTLOOK

     


Divi's Laboratories Q2 PAT up 16.72% at Rs606.46cr on the back of inventory efficiency gains in Q2

Divi's Laboratories reported 13.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs1,987.51cr



Divi's Laboratories reported 13.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs1,987.51cr. The revenues were up 1.37% on a sequential basis compared to Rs1,960.64cr in the Jun-21 quarter.

Divi’s is engaged in the manufacture of active pharma ingredients (API), intermediates and nutraceutical ingredients. The consolidated results include the numbers of Divi’s Labs USA and Divi’s Labs Europe too. For the half year ended Sep-21 total sales were higher by 13.4% at Rs3,948cr.

Net profits for the Sep-21 quarter were higher by 16.72% on yoy basis at Rs606.46cr. On a sequential basis, the net profit was higher by 8.86% compared to the Jun-21 quarter profits of Rs557.11cr.

The company benefited from the huge inventory efficiency gains reducing the inventory working capital lock-in. This more than offset the surge in raw material costs by 62.6% at Rs877cr.

Net margins at 30.51% in the Sep-21 quarter was higher than 29.70% in the Sep-20 yoy quarter and also better than 28.41% in Jun-21 sequential quarter.

STOCK OUTLOOK

Stock will sustain its upside rally. Short term dips or routine correction will come, use it as a buying opportunity . 4600 is immediate  support for short term.




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