Following the release of FY24 financial results, which showed a growth in the net profit by 67.6 percent YoY, the share price of a large-cap pharma company jumped by nearly 5.7 percent on BSE to hit a new 52-week high at Rs. 4,356.85 in Monday’s trading session.
With a market capitalisation of Rs. 1.13 lakh crore, at 01:15 p.m., the shares of Divi’s Laboratories Limited were trading in the green at Rs. 4,283.25, up by 3.9 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Saturday.
The revenue from operations stood at Rs. 2,303 crore in Q4 FY23-24, indicating a growth of 18 percent YoY from Rs. 1,951 crore in Q4 FY22-23, while on a quarter-on-quarter basis, it jumped by 24.2 percent from Rs. 1,855 crore in Q3 FY23-24.
Divi’s Laboratories witnessed a rise in the net profit by 50.3 percent QoQ from Rs. 358 crore in Q3 FY23-24 to Rs. 538 crore in Q4 FY23-24, and gained by 67.6 percent YoY from Rs. 321 crore in Q4 FY22-23 to Rs. 538 crore in Q4 FY23-24.
The company had earlier announced on April 25 that it is in the process of entering into a long-term supply agreement with a customer and is planning for capacity addition at its manufacturing facility with an estimated investment between Rs. 650 crores to Rs. 700 crores, expected to be operational around January 2027.
Further, the company’s Board has recommended a final dividend of Rs. 30 per equity share of the face value of Rs. 2 each for FY23-24, subject to the approval of the members.
As per the shareholding pattern of March 2024, the promoters hold a 51.92 percent stake in the company, Foreign Institutional Investors hold a 14.68 percent stake, while retail investors and Domestic Institutional Investors hold 11.19 percent and 22.21 percent stake in the company, respectively.
The stock has delivered positive returns of nearly 14.3 percent in six months, while 23.4 percent in the last one year. So far in 2024, the company has given 9.7 percent of positive returns.
Divi’s Laboratories Limited is engaged in the business of manufacturing of Active Pharmaceutical ingredients (APIs), Intermediates and Nutraceutical ingredients with a predominance in exports.
In addition to generic business, the company, through its custom synthesis business, supports innovator pharma companies for their patented products business right from gram scale requirements for clinical trials to launch and late life cycle management.
Written by Shivani Singh
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