Rs 30/Share Dividend: August 02 Is The Record Date; Buy The Stock To Get 1500% Payout?

Divi's Laboratories, a top producer of active pharmaceutical ingredients, was founded in 1990 and now ships its outstanding products to more than 100 nations. Divi's produces nutraceutical ingredients, generic APIs, and custom API synthesis. Divi's, one of the leading pharmaceutical firms in India, was founded more than 30 years ago in Hyderabad, India, and has two production facilities.

Divi's Laboratories Dividend

The Board of Directors "Recommended a final dividend of Rs 30/- (i.e. 1,500%) per equity share of face value Rs 2/- each for the financial year 2023-24, subject to approval of the members at the ensuing 34th Annual General Meeting (AGM). The dividend shall be paid within specified timelines from the conclusion of the AGM. The 34th AGM of the Members of the Company will be held on Monday, August 12, 2024. The record date for the purpose of the payment of dividend is August 02, 2024," said the company in a regulatory filing.

Divi's Laboratories Financials

In comparison to Rs 8,112 crores in the prior fiscal year, Divi's Laboratories has made a consolidated total income of Rs 8,184 crores during the fiscal year 2023-2024. As opposed to Rs 2,369 crores for the prior year, its PBT for the current year was Rs 2,163 crores in FY24. In FY24, net profit for the year was Rs 1,600 crores, compared to a PAT of Rs 1,824 crores in FY23.

For the quarter that ended on March 31, 2024, Divi's Laboratories recorded a consolidated net profit of Rs 538 crore, an improvement of 68% over the Rs 321 crore reported in the equivalent quarter of the previous fiscal year. Consolidated revenue climbed by 18% to Rs 2,303 crore for the reporting quarter from Rs 1,951 crore for the same time last year. Additionally, EBITDA climbed by a sharp 50% YoY to Rs 731 crore in Q4FY24 up from Rs 487 crore in Q4FY23.

Divi's Laboratories Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of DIVISLAB is Rs 4255. The stock has recently formed a rounding bottom Breakout pattern on the weekly chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the Rs 4300 level, it may have the potential to reach short-term targets of Rs 4800. On the other hand, immediate support levels are located at Rs 4100 and Rs 4000. These levels can be considered as opportunities to buy on dips. The Relative Strength Index (RSI) currently stands at 75 and is trending upward, indicating increasing buying momentum."

"Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover, moving out of the oversold region. These technical indicators, when considered together, suggest that DIVISLAB has the potential to reach a target price of Rs 4800 in the near future. To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 3800. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, DIVISLAB appears to present an appealing buying opportunity for those aiming for a Rs 4800 price target, provided that appropriate risk management measures are in place," the analyst further predicted.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.