Divi's Laboratories jumped 7.23% to Rs 863 at 14:35 IST on BSE, with the stock extending previous session's surge on prospect of receiving US drug regulator's clearance for Unit II of its Visakhapatnam facility.
The stock had surged 11.83% to Rs 804.80 yesterday, 12 September 2017. The stock has galloped 24.21% in four sessions to its ruling price, from a close of Rs 694.75 on 7 September 2017.Meanwhile, the S&P BSE Sensex was up 113.99 points, or 0.35% to 32,272.65.
High volume was witnessed on the counter. On the BSE, 8.36 lakh shares were traded in the counter so far, compared with average daily volumes of 2.3 lakh shares in the past one quarter. The stock had hit a high of Rs 863.15 and a low of Rs 793.05 so far during the day. The stock had hit a record high of Rs 1,380 on 16 September 2016. The stock had hit a 52-week low of Rs 533.10 on 29 May 2017.
The stock had outperformed the market over the past one month till 12 September 2017, gaining 28.39% compared with the Sensex's 3.03% gains. The stock had also outperformed the market over the past one quarter, rising 24.29% as against the Sensex's 3.42% rise. The scrip had, however, underperformed the market over the past one year, falling 38.27% as against the Sensex's 13.42% rise.
The large-cap company has equity capital of Rs 53.09 crore. Face value per share is Rs 2.
The US Food and Drug Administration (USFDA) is reportedly inspecting the Unit II of Divi's Laboratories' Visakhapatnam facility. The inspection which started on Monday, 11 September 2017 is expected to conclude in a week's time according to the report.
The USFDA had issued an import alert on the Unit II of the company in March and a warning letter to the same in May. The plants that are on FDA's import alert are not permitted to export drugs to the US. However, after receiving clearance from the European regulatory, it is speculated that the USFDA inspection of Unit II will conclude smoothly.
Divi's Laboratories had said in April that USFDA had exempted some more products manufactured at the company's Unit-II at Visakhapatnam from the import alert issued under clauses 66-40 & 99-32 of the FDA regulations.
Divi's Laboratories' net profit fell 41.5% to Rs 176.54 crore on 19.3% decline in net sales to Rs 821.20 crore in Q1 June 2017 over Q1 June 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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