DIVI

Divi's LaboratoriesNSEI:DIVISLAB Stock Report

Market Cap

₹1.4t

7D

1.3%

1Y

53.2%

Updated

17 Sep, 2021

Data

Company Financials +
DIVISLAB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends5/6

DIVISLAB Overview

Divi's Laboratories Limited manufactures and sells generic active pharmaceutical ingredients (APIs), intermediates, and nutraceutical ingredients in India, the United States, Asia, Europe, and internationally.

Divi's Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Divi's Laboratories
Historical stock prices
Current Share Price₹5,122.80
52 Week High₹2,985.00
52 Week Low₹5,271.65
Beta0.20
1 Month Change4.32%
3 Month Change22.05%
1 Year Change53.18%
3 Year Change269.09%
5 Year Change283.75%
Change since IPO58,031.06%

Recent News & Updates

Sep 02
With EPS Growth And More, Divi's Laboratories (NSE:DIVISLAB) Is Interesting

With EPS Growth And More, Divi's Laboratories (NSE:DIVISLAB) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

DIVISLABIN Life SciencesIN Market
7D1.3%2.6%2.0%
1Y53.2%52.0%60.1%

Return vs Industry: DIVISLAB exceeded the Indian Life Sciences industry which returned 52% over the past year.

Return vs Market: DIVISLAB underperformed the Indian Market which returned 60.1% over the past year.

Price Volatility

Is DIVISLAB's price volatile compared to industry and market?
DIVISLAB volatility
DIVISLAB Beta0.20
Industry Beta0.33
Market Beta1

Stable Share Price: DIVISLAB is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DIVISLAB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199016,818Kiran Divihttps://www.divislabs.com

Divi's Laboratories Limited manufactures and sells generic active pharmaceutical ingredients (APIs), intermediates, and nutraceutical ingredients in India, the United States, Asia, Europe, and internationally. It also undertakes custom synthesis of APIs and intermediates; and supplies a range of carotenoids, as well as markets vitamins to nutritional, pharma, food/beverage, and feed industries. The company was formerly known as Divi's Research Center and changed its name to Divi's Laboratories Limited in 1994.

Valuation

Is Divi's Laboratories undervalued compared to its fair value and its price relative to the market?

66.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIVISLAB (₹5122.8) is trading above our estimate of fair value (₹1325.56)

Significantly Below Fair Value: DIVISLAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DIVISLAB is poor value based on its PE Ratio (66.4x) compared to the Indian Life Sciences industry average (24.5x).

PE vs Market: DIVISLAB is poor value based on its PE Ratio (66.4x) compared to the Indian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: DIVISLAB is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: DIVISLAB is overvalued based on its PB Ratio (14.6x) compared to the IN Life Sciences industry average (4.2x).


Future Growth

How is Divi's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIVISLAB's forecast earnings growth (18.6% per year) is above the savings rate (6.8%).

Earnings vs Market: DIVISLAB's earnings (18.6% per year) are forecast to grow faster than the Indian market (18.4% per year).

High Growth Earnings: DIVISLAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: DIVISLAB's revenue (16.3% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: DIVISLAB's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIVISLAB's Return on Equity is forecast to be high in 3 years time (24.7%)


Past Performance

How has Divi's Laboratories performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIVISLAB has high quality earnings.

Growing Profit Margin: DIVISLAB's current net profit margins (28.5%) are higher than last year (26.8%).


Past Earnings Growth Analysis

Earnings Trend: DIVISLAB's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: DIVISLAB's earnings growth over the past year (28.4%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: DIVISLAB earnings growth over the past year (28.4%) underperformed the Life Sciences industry 34.7%.


Return on Equity

High ROE: DIVISLAB's Return on Equity (22%) is considered high.


Financial Health

How is Divi's Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DIVISLAB's short term assets (₹61.7B) exceed its short term liabilities (₹11.1B).

Long Term Liabilities: DIVISLAB's short term assets (₹61.7B) exceed its long term liabilities (₹3.7B).


Debt to Equity History and Analysis

Debt Level: DIVISLAB's debt to equity ratio (0.05%) is considered satisfactory.

Reducing Debt: DIVISLAB's debt to equity ratio has reduced from 0.9% to 0.05% over the past 5 years.

Debt Coverage: DIVISLAB's debt is well covered by operating cash flow (40309.1%).

Interest Coverage: DIVISLAB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Divi's Laboratories's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIVISLAB's dividend (0.39%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: DIVISLAB's dividend (0.39%) is low compared to the top 25% of dividend payers in the Indian market (1.44%).


Stability and Growth of Payments

Stable Dividend: DIVISLAB's dividends per share have been stable in the past 10 years.

Growing Dividend: DIVISLAB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.9%), DIVISLAB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DIVISLAB's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Kiran Divi (45 yo)

1.67yrs

Tenure

₹282,200,000

Compensation

Dr. Kiran Satchandra Divi has been the Chief Executive Officer of Divi's Laboratories Limited since January 4, 2020. Dr. Divi has been an Whole-time Director at Divi's Laboratories Limited and its and ser...


CEO Compensation Analysis

Compensation vs Market: Kiran's total compensation ($USD3.83M) is above average for companies of similar size in the Indian market ($USD1.19M).

Compensation vs Earnings: Kiran's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DIVISLAB's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: DIVISLAB's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DIVISLAB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Divi's Laboratories Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Divi's Laboratories Limited
  • Ticker: DIVISLAB
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹1.372t
  • Shares outstanding: 265.47m
  • Website: https://www.divislabs.com

Number of Employees


Location

  • Divi's Laboratories Limited
  • Divi Towers
  • 1-72/23(P)/DIVIS/303
  • Hyderabad
  • 500032
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 12:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.