The rising trend in the shares of pharma company Divi's Laboratories continues. On Monday, the stock witnessed a rise for the 12th consecutive day and during this period its price rose by about 32%. On Monday, the stock jumped more than 6% to reach an intraday high of Rs 11,824. Buying in shares has increased after the company's strong Q2 results.
Divi's Laboratories' market cap crosses Rs 3 lakh crore
Due to the rise in shares, the market cap of Divi's Laboratories crossed Rs 3 lakh crore for the first time. According to BSE data, the company has reached 30th position among all listed companies in terms of market cap.
The company has left behind companies like ONGC, Bharat Electronics, Bajaj Auto and Bajaj Finserv. Now Divi's Laboratories has become the second largest company in the pharma sector. In this case, Sun Pharmaceutical Industries is in first place with a market cap of Rs 4.6 lakh crore.
Divi's Laboratories Share: Q2 profit increased by 64% to Rs 1,127 crore
Divi's Laboratories has performed well in the second quarter of FY 2027. The company's net profit increased by 64% on annual basis to Rs 1,127 crore. At the same time, revenue increased by 35% to Rs 3,676 crore.
The company made a profit of Rs 24 crore from foreign exchange in this quarter. In the same quarter last year, this profit was Rs 63 crore.
Divi's Laboratories Share: Strong growth in CDMO and generic business
According to brokerage firm Jefferies, the company's September quarter results were better than its expectations. Strong growth was recorded in all three business segments of the company.
CDMO business grew by 50% on annual basis. At the same time, a growth of 18% was recorded in the generic medicines business, which is the highest in many years.
Apart from this, the company's EBITDA margin reached its highest level since the Covid period. Strong business performance has supported the rise in the stock.
Jefferies increases target, gives buy rating
Jefferies has maintained Buy rating on Divi's Laboratories shares. The brokerage has increased its target price from Rs 10,200 to Rs 12,550.
The brokerage believes that strong growth in the company's business and better margins can support its performance in the future.
However, the stock has increased by about 32% in 12 days. In such a situation, investors should assess the valuation and risk of the company before making a purchase at the current price. Jefferies' target is a brokerage estimate, not a guarantee.