Shares of Divi's Laboratories jumped to fresh record highs. Know why

Shares of Divi's Laboratories Ltd., a leading pharma company, jumped to fresh record highs on Monday after the drugs major reported a stunning set of quarterly numbers and announced a bonus issue.

Divi's said its first quarter profit jumped 44 percent to 243.2 crore rupees compared with 168 crore rupees in the same quarter a year ago. Sales at the pharma major rose 26 percent to 807 crore rupees during April-June compared with 640 crore rupees in the year ago period. Divi's profit was boosted by a forex gain of 21.2 crore rupees.

The firm also announced a 1:1 bonus for investors in the 25th year of its inception.

Divi's rose 120 rupees, or 6.1 percent, to 2,089 rupees on the National Stock Exchange, where 2.16 lakh shares were traded by 9:50 amcompared with the 5-day average of 30,000.

Divi's market capitalisation has gained 40 percent to 26,160 crore rupees over one year as investors sought the comfort of predictable revenue streams and strong export income.

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