Divi’s Labs slumps

Divi’s Labs posted a 17% (YoY) jump in consolidated net profit at Rs.606 crore on the back of a robust topline. Its total oncome rose 14% at Rs,2007 crore.

Sequentially, revenue was up 1% while net profit was up 9%.

The company said it has not experienced any significant impact on its operations, supply chain and recoverability of carrying amounts of financial and non-financial assets due to the pandemic.

This is a decent set of earnings yet the stock price has been beaten down as it did not meet the expectation of analysts. It is also pure positional profit booking post the earnings.

The stock price opened 2.5% lower at Rs.5082.35 and went down to hit an intraday low at Rs.4751. Its 10% LC for the day is at Rs.4684.55.