Divi's Laboratories Ltd. on Thursday said it has started commercial operations at its Kakinada plant in Andhra Pradesh. The operations are a part of Phase One of Unit 3 of the greenfield project at Ontimamidi Village (Kona) in Thondangi Mandal, Kakinada.
The first phase of 'Export Orientated Unit' is being implemented on 200 acres of the 500-acre Unit III site, with an estimated investment between Rs 1,200 crores and Rs 1,500 crores, according to an exchange filing.
Divi's Labs currently operates two manufacturing sites near Hyderabad and Visakhapatnam. Both the manufacturing units have more than 64 production buildings and 70 pharma suits with a total reaction capacity of more than around 14,500 m³, making it one of the largest active pharmaceutical ingredients manufacturing facilities in the world.
The third manufacturing site near Kakinada has been in the works since 2021.
The company is a commercial-scale manufacturer of non-potent and highly potent APIs as well as several low-dose products.
Divi's Laboratories reported a strong performance in the second quarter, with a 22.5% increase in consolidated revenue, reaching Rs 2,338 crore compared to Rs 1,909 crore in the same period last year.
Net profit also saw a significant rise of 47%, reaching Rs 510 crore, up from Rs 348 crore in the corresponding quarter of the previous year.
Shares of Divi's Labs closed 1.15% higher at Rs 6,140.5 apiece, compared to a 1.8% rise in the benchmark BSE Sensex. The stock gave a return of 52% last year.
Ten out of the 28 analysts tracking Divi's Laboratories have a 'buy' rating on the stock; five recommend a 'hold,' and 13 suggest a 'sell,' according to Bloomberg data. The average of the 12-month analyst price target of Rs 5,456 implies a potential downside of 11%.
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