Divi’s Lab stock gains over 21% as USFDA aims to lift import alert at Visakhapatnam unit

By: | Updated: November 2, 2017 12:42 PM

Divi's Laboratories shares advanced over 21% in the early morning trade on Thursday after the company said that US Food and Drug Administration will lift the import alert from its Visakhapatnam unit.

About 90 lakh shares of Divi’s Lab have been traded so far on both BSE and NSE, out of 80 lakh on NSE alone.

Divi’s Laboratories shares advanced over 21% in the early morning trade on Thursday after the company said that US Food and Drug Administration will lift the import alert from its Visakhapatnam unit. “Divi’s Laboratories has been informed by the US-FDA that it will be lifting the Import Alert 66-40 and moving to close out the Warning letter issued to the company’s Unit-II at Visakhapatnam,” company said in an exchange filing. Following the announcement, the stock of Divi’s Lab jumped as much as 21.37% to a day’s high of Rs 1,117 on BSE.

About 90 lakh shares of Divi’s Lab have been traded so far on both BSE and NSE, out of 80 lakh on NSE alone. Divi’s Lab is the biggest gainer among the pharma stocks and also from the ‘A’ group stocks of BSE. Earlier this week, Divi’s Laboratories reported a drop of 7.62% in its net profit to Rs 206.78 crore for the second quarter ended 30 September 2017 as compared to a net profit of Rs 223.85 crore in the corresponding period of previous fiscal. The company’s revenue from operations fell to Rs 890.2 crore as against Rs 1,005.43 crore during the same period a year ago.

Meanwhile, the benchmark Sensex index hit a fresh lifetime high on Thursday extending yesterday’s gains steered by the ranking upgrade in the World Bank Ease of Doing Business rankings 2018. Earlier this week on Tuesday, India ranked 100th for the first time in the World Bank’s latest ‘Doing Business’ report, jumping 30 places from the last year’s 130. The 30-share barometer Sensex added 57.3 points to hit an all-new record high of 33657.57.

Sensex and Nifty opened flat on Thursday after the US Federal Reserve kept the key policy rates unchanged in its latest two-day meeting. Shares of Vedanta and Power Grid Corporation will in close watch ahead of their second-quarter numbers today. BSE Sensex started 15.57 or 0.05% higher at 33,615.84 points while NSE Nifty opened flat at 10440.5 points. The pharma stocks gained the most with Nifty Pharma index emerging as the top gainers among the sectoral indices of NSE. The index jumped nearly 2.67% led by the upmove in the shares of Divi’s Laboratories, Aurobindo Pharma, Sun Pharma, Cipla and Lupin.

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