Promoter of this pharma company is Indias 15th richest person

This stock surged 4 per cent today despite weak market sentiments.

On December 21, the shares of Divi’s Laboratories Ltd closed trading at Rs 3500.15 with a 4.46 per cent gain for the day. The stock opened at Rs 3350.80 and made an intraday high and low of Rs 3531.65 and Rs 3350, respectively.    

Divi’s Laboratories Limited is one of the leading pharmaceutical companies in the world, manufacturing Active Pharmaceutical Ingredients (APIs), Intermediates and Nutraceuticals. It has two manufacturing plants, one in Visakhapatnam and the other in Hyderabad.   

The company has a strong presence in the international market. About 88 per cent of the company’s revenue comes from its export business. The company has a core competency in custom synthesis under contract manufacturing of APIs. Pfizer, Merck, and GSK are a few of its clients.   

About FY22 financial performance, the company’s total revenue stood at Rs 8993.85 crore, a 31 per cent increase from Rs 6862 crore in FY21. FY22 net profit also improved by 50.84 per cent from Rs 1954 crore in FY21 to Rs 2948 crore.   

Over the past decade, it has constantly been able to deliver high ROE and ROCE numbers. Currently, as per the FY22 period ending, the company has an ROE and ROCE of 28.2 per cent and 35.1 per cent, respectively.   

About the shareholding pattern, 51.94 per cent of the stake is owned by the promoters, 16.52 per cent by FIIs, 19.98 per cent by DIIs, and the rest 11.56 per cent by non-institutional investors. Murli K Divi, promoter of Divi’s Laboratories Ltd, is India’s 15th richest person.    

The company has a market capitalisation of Rs 92917 crore. The scrip has a 52-week high and low of Rs 4707 and Rs 3197, respectively.