Buy Divis Laboratories: Sanjay Vaid

Buy Divis Laboratories, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "The Q1 performance of Divis Laboratories was very decent. The net sales grew by 36% and EBITDA margins were maintained above 35% despite the cost ratios. PAT was up 19.5%. We are bullish on the stock based on the managements aggressive posturing and their expectations that FY12 numbers would be much better than the FY11 and for next two years the guidance is pretty decent."

He further added, "On the F&O front also, stock has seen increase in open interest of almost 6% with the cost of carrying improving and fresh addition in the stock we have seen clearly signs that stock is going for newer highs. Stock has closed above the previous week high also. Therefore we expect that the stock can easily go and head towards Rs 755 levels therefore we are recommending a buy with a target price of Rs 755 and stop loss of Rs 710."