Reviews

DIVI’S LABORATORIES

Ticker: 532488 FV: Rs.2
52-Week H/L: Rs.1141.75/533.10

We had recommended Divi's Laboratories in Volume No 34, Issue No 11 (dated Jan. 1, 2018) when the scrip was trading at Rs 1114.25. Our recommendation was backed by justifiable numbers posted in Q2FY18 and regulatory relief granted to the company. In Q3FY18, the company's revenue was marginally up by 6.2 per cent YoY. Its operating profit declined by 14.06 per cent YoY to Rs 343.15 crore. There was a forex loss of Rs 16 crore as against forex gain of Rs 0.65 crore which has affected its profitability. Its PAT has declined by 16.3 per cent YoY to Rs 224.6 crore. Its Visakhapatnam facility is undergoing USFDA inspection for six of its observations. At the current levels, we urge investors to HOLD the scrip.

SADBHAV INFRASTRUCTURE PROJECTS

Ticker: 539346 FV: Rs.10
52-Week H/L: Rs.157.50/89.65

We had recommended Sadbhav Infrastructure Projects in Volume No 34, Issue No 11 (dated Jan. 1, 2018) when the scrip was trading at Rs 144.30. Our recommendation was backed by the new projects bagged by the company and its rising toll collection. The company has posted decent numbers for Q3FY18. Its revenue has increased by 93.8 per cent YoY. Its operating profit rose by 35 per cent YoY to Rs 337.7 cr . In Q3FY18, the EBITDA margin stood at 47.4 per cent . In Q3FY17, the company had net loss of Rs 69.9 crore which has been reduced to Rs 41.2 crore in Q3FY18. The company has strong order book currently, which will generate healthy cash flow and topline once the projects get operational. Thus, we urge investors to HOLD the scrip.