Divi's Laboratories' Share Jumps 18%, Emerges As Second Most Valuable Pharma Company

Divi's Laboratories' share price rose 65 per cent so far in 2020 leaving behind drugmakers Aurobindo Pharma, Dr. Reddy’s Laboratories Ltd and Cipla Ltd with much higher revenues.

An Indian stock trader monitors share prices on his terminal. FILE PIC/AFP

New Delhi: At a time when the markets are extremely volatile, pharma company Divi's Laboratories Ltd managed to topple drugmakers Aurobindo Pharma, Dr. Reddy’s Laboratories Ltd and Cipla Ltd and emerged as the second most valuable listed pharmaceutical company. Also Read: Saudi Arabia Stops Supply Of Oil To Pakistan; Deal Put Off Due To Deferred Payments On Monday, Divi's Laboratories' share price jumped over 18 percent after strong sales on volume and minimal impact due to the ongoing health crises of Covid-19. The company’s consolidated net profit rose 81 percent to Rs 492 crore for the quarter ended June 30, 2020. Around 10:23 am, the scrip traded 13.51 percent higher to Rs 3,161 per share on the NSE. As per the report on business daily Mint, the company’s share price have rose 65 per cent so far in 2020 leaving behind drugmakers Aurobindo Pharma, Dr. Reddy’s Laboratories Ltd and Cipla Ltd with much higher revenues. On Saturday, the company’s net profit for the corresponding quarter previous year stood at Rs 272.44 crore. Total income stood at Rs 1,747.80 crore during the quarter as against Rs 1,193.20 crore last year. As per the report in Mint, Divi's Lab holds 14^th position in terms of revenue. In the pharma sector, Sun Pharmaceutical reported the highest revenue with ₹7,467.19 crore, and retained the spot of being the most valued listed company with a market cap of ₹1.28 trillion. Divi's Laboratories is a manufacturer of Active Pharmaceutical Ingredients (APIs) and Intermediates. Divi’s sales grew 49 per cent year on year to ₹1,730 crore for the June quarter supported by custom synthesis as well as generics. The gross margin also witnessed 190 basis points rise year on year to 63 per cent on a superior product mix and lower raw material cost. Ebitda was up by 78 per cent year on year to ₹7 crore for the quarter.