NSEI:DIVISLAB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Divi's Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

DIVISLAB

3.4%

IN Life Sciences

1.4%

IN Market


1 Year Return

30.1%

DIVISLAB

19.8%

IN Life Sciences

2.3%

IN Market

Return vs Industry: DIVISLAB exceeded the Indian Life Sciences industry which returned 19.8% over the past year.

Return vs Market: DIVISLAB exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

DIVISLABIndustryMarket
7 Day2.6%3.4%1.4%
30 Day2.9%2.2%2.7%
90 Day3.1%0.8%-1.4%
1 Year31.5%30.1%20.7%19.8%4.3%2.3%
3 Year37.6%33.5%34.7%31.5%20.9%14.9%
5 Year99.6%89.8%129.0%121.4%41.2%28.2%

Price Volatility Vs. Market

How volatile is Divi's Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DIVISLAB (₹1693.1) is trading above our estimate of fair value (₹400.25)

Significantly Undervalued: 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 (33.1x) compared to the Life Sciences industry average (23.5x).

PE vs Market: DIVISLAB is poor value based on its PE Ratio (33.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: DIVISLAB is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DIVISLAB is overvalued based on its PB Ratio (6.5x) compared to the IN Life Sciences industry average (1.3x).


Next Steps

Future Growth

How is Divi's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIVISLAB's forecast earnings growth (16.8% per year) is above the savings rate (7.6%).

Earnings vs Market: DIVISLAB's earnings (16.8% per year) are forecast to grow slower than the Indian market (18.1% per year).

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

Revenue vs Market: DIVISLAB's revenue (13.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: DIVISLAB's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DIVISLAB's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

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

8.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DIVISLAB's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: DIVISLAB's earnings growth over the past year (36.3%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: DIVISLAB earnings growth over the past year (36.3%) exceeded the Life Sciences industry 11.1%.


Return on Equity

High ROE: DIVISLAB's Return on Equity (19.5%) is considered low.


Return on Assets

ROA vs Industry: DIVISLAB has a higher Return on Assets than the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: DIVISLAB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Divi's Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DIVISLAB's short term assets (₹46.5B) exceeds its short term liabilities (₹8.5B)

Long Term Liabilities: DIVISLAB's short term assets (46.5B) exceeds its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: DIVISLAB's debt to equity ratio (1.5%) is considered satisfactory

Reducing Debt: DIVISLAB's debt to equity ratio has increased from 0.7% to 1.5% over the past 5 years.

Debt Coverage: DIVISLAB's debt is well covered by operating cash flow (903.7%).

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


Balance Sheet

Inventory Level: DIVISLAB has a high level of physical assets or inventory.

Debt Coverage by Assets: DIVISLAB's debt is covered by short term assets (assets are 44.034560x debt).


Next Steps

Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DIVISLAB's dividend (0.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: DIVISLAB's dividend (0.95%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

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 (31.3%), 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 (28.2% payout ratio).


Next Steps

Management

What is the CEO of Divi's Laboratories's salary, the management and board of directors tenure and is there insider trading?

13.1yrs

Average management tenure


CEO

Murali Krishna Divi (68yo)

0yrs

Tenure

₹588,100,000

Compensation

Dr. Murali Krishna Prasad Divi, M. Pharm. Ph.D. serves as a Managing Promoter of Divi's Laboratories Limited and serves as its Executive Chairman and Managing Director. Dr. Divi served as Managing Director ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Murali Krishna's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

13.1yrs

Average Tenure

61.5yo

Average Age

Experienced Management: DIVISLAB's management team is seasoned and experienced (13.1 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

68yo

Average Age

Experienced Board: DIVISLAB's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell₹10,748,29810 Sep 19
M. Babu
EntityIndividual
Shares6,600
Max Price₹1,628.53
Sell₹1,485,00005 Sep 19
G. Rajesh
EntityIndividual
Shares900
Max Price₹1,650.00
Sell₹21,330,80305 Sep 19
M. Babu
EntityIndividual
Shares13,200
Max Price₹1,615.97
Sell₹1,650,00012 Aug 19
G. Rajesh
EntityIndividual
Shares1,000
Max Price₹1,650.00
Sell₹902,84409 Jul 19
Sridhar Donepudi
EntityIndividual
Shares558
Max Price₹1,618.00
Sell₹34,050,15616 Mar 19
N.V. Ramana
EntityIndividual
Shares20,000
Max Price₹1,709.00
Sell₹1,961,80013 Feb 19
Y. Rao
EntityIndividual
Shares1,200
Max Price₹1,634.83
Buy₹2,267,92513 Feb 19
K. Rao
EntityIndividual
Shares1,500
Max Price₹1,511.95
Sell₹1,057,70013 Dec 18
S. Ramakrishna
EntityIndividual
Shares700
Max Price₹1,511.00
Sell₹5,817,01223 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares3,718
Max Price₹1,564.55
Sell₹1,561,99321 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares1,000
Max Price₹1,561.99
Sell₹7,780,40717 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares5,000
Max Price₹1,556.08
Sell₹10,830,29913 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares7,000
Max Price₹1,547.19
Buy₹1,477,80013 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares1,000
Max Price₹1,477.80
Sell₹18,451,55112 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares12,000
Max Price₹1,537.63
Sell₹4,481,02005 Nov 18
Madhusudana Divi
EntityIndividual
Role
Member of the Board of Directors
Director of Projects & Whole-Time Director
Shares3,000
Max Price₹1,493.67
Sell₹4,550,17002 Nov 18
Allupati Patro
EntityIndividual
Shares3,070
Max Price₹1,482.14

Ownership Breakdown


Management Team

  • Venkata Nimmagadda (61yo)

    Executive Director

    • Tenure: 25yrs
    • Compensation: ₹299.00m
  • Murali Krishna Divi (68yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹588.10m
  • L. Babu (67yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹22.70m
  • Madhusudana Divi (75yo)

    Director of Projects & Whole-Time Director

    • Tenure: 25yrs
    • Compensation: ₹9.90m
  • Kiran Divi (43yo)

    Whole-Time Director

    • Tenure: 18.2yrs
    • Compensation: ₹202.30m
  • L. Babu (62yo)

    VP of Procurement & Chief Information Officer

    • Tenure: 0yrs
  • Nilima Motaparti (37yo)

    Additional Whole-Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹6.80m
  • Satya Divi (42yo)

    Vice President of Sales & Marketing

    • Tenure: 0yrs
  • M. Choudhury

    Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Venkata Nimmagadda (61yo)

    Executive Director

    • Tenure: 25yrs
    • Compensation: ₹299.00m
  • Gangavarapu Kumar (68yo)

    Non-Executive Independent Director

    • Tenure: 18.6yrs
    • Compensation: ₹1.20m
  • Murali Krishna Divi (68yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹588.10m
  • Madhusudana Divi (75yo)

    Director of Projects & Whole-Time Director

    • Tenure: 25yrs
    • Compensation: ₹9.90m
  • Kiran Divi (43yo)

    Whole-Time Director

    • Tenure: 18.2yrs
    • Compensation: ₹202.30m
  • Nilima Motaparti (37yo)

    Additional Whole-Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹6.80m
  • Ranga Ravipati (68yo)

    Non-Executive Independent Director

    • Tenure: 6.9yrs
    • Compensation: ₹1.30m
  • Kantheti Venkata Seshavataram (78yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.00m
  • Ramesh B. Nimmagadda

    Additional Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹900.00k
  • Seru Ganapaty (66yo)

    Independent Additional Director

    • Tenure: 2.3yrs
    • Compensation: ₹700.00k

Company Information

Divi's Laboratories Limited's company bio, 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: ₹449.465b
  • Shares outstanding: 265.47m
  • Website: https://www.divislaboratories.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532488BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2003
DIVISLABNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2003

Biography

Divi's Laboratories Limited manufactures and sells generic active pharmaceutical ingredients (APIs) and intermediates for in the United States, Asia, Europe, and internationally. The company also undertake ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.