Shares of Divi's Laboratories rose 4 percent on Monday after the drugmaker reported a 64 percent year-on-year increase in its September quarter net profit, prompting brokerages to raise their earnings estimates and maintain positive ratings on the stock.
It surged as much as 6.56 percent to hit a high of Rs 11,824 per share on the NSE, extending its gains after rising 7.5 percent during the special Diwali trading session on Sunday.
However, the stock pared some of its gains due to profit booking at higher levels and was trading around 4 percent higher at around 1 pm.
The positive sentiment also lifted the Nifty Pharma index by around 1.5 percent.
Among brokerages, JPMorgan maintained an 'Overweight' rating on Divi's Laboratories and raised its target price to Rs 12,500, indicating an upside potential of 12.65 percent from the previous session's closing price.