Divis Laboratories

The company has earmarked an aggressive capex of around Rs 2,000 crore over next two years in order to take a chunk of around $20 billion opportunity of APIs going off-patent over FY23-25.

Ebitda margin contracted by 180 basis points year-on-year to 41.5 per cent in Q2FY22 due to higher other expenses/employee costs.

Merck & Co's Covid-19 antiviral pill, Molnupiravir, reduced the risk of hospitalisation or death by 50 per cent

The board has recommended a dividend of Rs 20 (i.e. 1,000 per cent) per equity share of face value Rs 2 each for the financial year 2020-21

Currently, Divis Labs stands at the 30th position among companies having market-cap of over Rs 1 trillion.

Q2FY21 EBITDA margins expanded 843 bps YoY to 42.4 per cent due to significantly better gross margin performance and lower other expenditure.

All that happened in the markets today

Changes have been made in several indices, including Nifty 500, Nifty 200, Nifty 100 and Nifty Midcap 150

In the past month, Divi's Lab has outperformed the market by surging 10 per cent, as compared to 1.4 per cent decline in the S&P BSE Sensex

Stock calls by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers

Operational revenue during the quarter grew 17 per cent YoY at Rs 1,163 crore against Rs 995 crore in the corresponding quarter of previous year

Strong demand for active ingredients is further accentuated by shortages even as prospects in custom synthesis business remain firm

Divis Labs had reported a net profit of Rs 397.65 crore on total revenue of Rs 1,365 crore in the quarter ended September 2018

The company said it would be investing Rs 6 billion each on its Unit-2 at the Vizag SEZ in Andhra and Unit-1 of its Nalgonda SEZ in Telangana

Thus far in the current month, Divi's Labs outperformed the market by gaining 23% after the company on November 2, said that the USFDA will lift import alert for its Visakhapatnam unit.

6 observations were made after the USFDA completed its audit on Sept 19

Company, however, did not provide details of the warning letter

The stock was down 14% to Rs 745 in intra-day trade, extending its Friday's 22% fall on the BSE.

The stock was down 17% to Rs 918 on the BSE on back of heavy volumes.

The company should respond to form 483 in writing with corrective action plan, then implement that expeditiously