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Divi's Lab extends Monday's rally

Capital Market 

Divi's Laboratories advanced 1.6% to Rs 745.90 at 12:48 on BSE, extending Monday's gains triggered by the US health regulator deciding to lift the import alert imposed on the company's unit at Visakhapatnam.

Meanwhile, the S&P Sensex was up 158.32 points or 0.5% at 31,873.96.

On the BSE, 2.55 lakh shares were traded on the counter so far as against the average daily volumes of 2.46 lakh shares in the past one quarter. The stock had hit a high of Rs 755.65 and a low of Rs 741.75 so far during the day. The stock had hit a record high of Rs 1,380 on 16 September 2016 and a 52-week low of Rs 533.10 on 29 May 2017.

The stock had outperformed the market over the past one month till 10 July 2017, advancing 12.81% compared with the Sensex's 1.45% rise. The stock had also outperformed the market over the past one quarter, gaining 11.72% as against the Sensex's 7.24% rise. The scrip had, however, underperformed the market over the past one year, sliding 34.56% as against the Sensex's 16.92% rise.

The large-cap company has equity capital of Rs 53.09 crore. Face value per share is Rs 2.

Shares of Divi's Laboratories have surged 9.66% in two trading sessions from its closing of Rs 680.15 on 7 July 2017, after the company announced during market hours yesterday, 10 July 2017 that the US health regulator will lift the import alert imposed on the company's Unit-II at Visakhapatnam. The stock surged 7.94% in a single trading session to settle at Rs 734.15 yesterday, 10 July 2017.

Divi's Laboratories had earlier informed that the United States Food and Drug Administration (USFDA) has issued an Import Alert under clauses 99-32 and 66-40 in March of 2017 and a warning letter in May of 2017 for its Vishakhapatnam facility.

Divi's had filed detailed responses and given updates to the Form-483 and the warning letter within the stipulated time. Divi's Laboratories, along with its external consultants, specialists and subject matter experts, had taken up appropriate remediation measures to address the concerns raised by USFDA.

Divi's Laboratories' net profit fell 19.5% to Rs 259.29 crore on 3.5% decline in net sales to Rs 1063.14 crore in Q4 March 2017 over Q4 March 2016.

Divi's Laboratories is primarily engaged in the manufacture of active pharmaceutical ingredients (APIs) & intermediates for generics; custom synthesis of API's and advanced intermediates for discovery compounds for pharma giants; building blocks for peptides; building blocks for nucleotides; carotenoids; and chiral ligands.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 11 2017. 12:49 IST