Divi's Labs at new high

Divis Labs is one of the big stars on the market today. It has hit a new high at Rs.2129, which is a good 8% jump over previous close. Volumes are robust at over four times.

This Hyderabad company engaged in the manufacture of API posted a very good performance for Q1FY16. On a 26% (YoY) rise in total income at Rs.809 crore, it posted a net profit of Rs.45% at Rs.243 crore. EBITDA came in 27% higher at Rs.300 crore and margins rose from 36.6% to 37.1%. The company also had a forex gain of Rs.21 crore v/s Rs.1 crore in previous Q1.

The market is more enthused with the fact that it has announced a liberal 1:1 bonus. Its current equity currently stands at Rs.26.55 crore and post the bonus, it will go up to Rs.53.10 crore.

Promoters currently hold 52.08% stake, FIIs stake has marginally gone down from 19.36% to 19.07% (QoQ) and DIIs has gone up from 14.17% to 14.07%.