On Monday, shares of Divi's Laboratories surged as much as 18.2 percent to a new all-time high of Rs 3,293 after the company reported an 80.6 percent jump in its consolidated net profit at Rs 492.06 crore for the June ended quarter.
The strong results, which were out on Saturday, were mainly on account of robust sales during the period. In the same quarter a year ago, the company logged a profit of Rs 272.44 crore.
Its total income stood at Rs 1,747.80 crore for April-June 2020 against Rs 1,193.20 crore a year ago.
"The company has been able to have near normal operations during the quarter and there was minimal impact due to COVID-19 pandemic," Divi's Laboratories said.
It added that while a significant part of the ongoing capex programs has been completed during the last financial year, due to the COVID-19 pandemic, there has been a delay in implementing the balance part of the capex programs taken up by the company due to non-availability of workmen of some contractors implementing the projects.
The company has seen improvement subsequently in terms of some of the technicians of contractors reporting for duty and materials arriving at the site. It expects to complete the capex programs by the second half of the financial year.
Divis Laboratories is a manufacturer of APIs (active pharmaceuticals ingredients), intermediates and registered starting materials offering high-quality products to over 95 countries.
Motilal Oswal has upgraded the stock to a 'buy' rating with a price target of Rs 3,300 citing potential in its contract manufacturing or CRAMS business.