Divi’s Laboratories

The analysis is based on a common sample of 76 companies from the Nifty 100 index

Pfizer's oral Covid drug, weak sales of generics, and valuations may cap upsides

Supply of Molnupiravir to Merck was a key near-term trigger for the stock

Revenue growth prospects, however, remain strong driven by multiple factors

Ongoing capacity additions, market share gains, and new launches are key triggers

Shares of Divi's Laboratories on Monday gained 4 per cent after the company reported a 29.30 per cent rise in its consolidated net profit for the quarter ended March 31, 2021

Drug firm Divi's Laboratories on Saturday reported a 29.30 percent rise in its consolidated net profit to Rs 502.02 crore for the quarter ended March 31, 2021, on account of robust sales

However, the company's earnings showed strong traction in 2020-21 due to a surge in demand for bulk drugs caused by the pandemic

Divi's Laboratories Q3 results: While top line growth was strong, margin performance stood out in the December quarter

On the other hand, PSU stocks and banks have been laggards - with ONGC, Indian Oil, IndusInd Bank, and Coal India delivering the worst returns.

According to the fund's profile, its top holding as of July 31 was drugmaker Divi's Laboratories Ltd., which has gained more than 70% in 2020

Shares of Zee Entertainment Enterprises fell 3.7 per cent and that of Bharti Infratel ended flat. The two companies will be removed from the bluechip index

Over Rs 650-cr selling in Zee, Infratel

The near term upside, however, is limited given the sharp stock price run up

For the quarter ended June 2020, Divi's Lab reported a net profit of Rs 492.06 crore on account of robust sales.

Bharti Infratel and Zee Entertainment Enterprises will be dropped from the Nifty 50, NSE Indices said in a statement

Margins to get better once supplies start from expanded capacities next year

The company had posted a net profit of Rs 291.97 crore for the same period previous fiscal, Divi's Labs said in a BSE filing

The company had posted a net profit of Rs 403.72 crore in the July-September period of 2018-19.

The second largest pharma player by market value is also expanding capacities to push earnings