InvestorQ : Why has Divi’s Labs stock fallen so sharply in recent weeks?
manisha Kolvenkar made post

Why has Divi’s Labs stock fallen so sharply in recent weeks?

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Crowny Pinto answered.
3 weeks ago
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The Hyderabad based Divi’s Laboratories, a leader in the export of active pharma ingredients (APIs), touched a 52-week low of Rs 3,344. The stock has now tumbled nearly 11% after the results were announced for Q2FY23 and is down over 30% from the peak. PAT fell 18% yoy at Rs493.60 crore for the second quarter while sales also fell by 6.7% at Rs1,854 crore. Apart from the pressure on the API business globally, Divi’s also witnessed EBITDA margins compressing by 767 bps yoy to 33.5%. This was on account of high energy and transportation costs. Brokerages downgraded Divi from BUY to HOLD due to concerns over lower operating leverage and weak API traction.

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