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Analysts retained their bullish view on Divis Laboratories after the drug major on Saturday posted a 29.30% growth in its consolidated net profit to Rs 502.02 crore for the quarter ended March 31, 2021, on account of robust sales. The company had posted a net profit of Rs 388.23 crore for the corresponding period of the previous fiscal.

After opening 1.88% higher at Rs 4,194, shares of the company scaled their new high of 4284.05 in the morning trade. The scrip traded 1.86% higher at Rs 4193 at around 1.15 pm (IST). On the other hand, the benchmark BSE Sensex was up 455 points or 0.89% at 51,863 at around the same time.

The consolidated total income of the company stood at Rs 1,811.71 crore for the quarter under consideration. It was Rs 1,466.44 crore for the same period a year ago, it added.

For the fiscal year ended March this year, the company posted a net profit of Rs 1,984.29 crore as against Rs 1,376.54 crore for the previous fiscal year, the filing said.

What’s in it for investors?

Sharekhan holds the ‘Buy’ call on Divi’s Laboratories with a price target of Rs 4,810, indicating an upside of 14.71% from the current market price.

“Divis Laboratories reported yet another impressive performance for the quarter with results ahead of estimates,” Sharekhan said.

Likewise, Motilal Oswal Financial Services also sees over 10% upside in Divi’s Laboratories post Q4 results. “We remain positive on Divi’s Laboratories on the back of sustained volume growth in base molecules, superior performance in niche categories of CS and Nutraceuticals, ability to work on complex Iodine based chemistry, and sufficient cash available to take up new projects.”

The board of directors has proposed a dividend of Rs 20 per share of face value Rs 2 each for the financial year 2020-21.