Divi's Laboratories
Market Cap
₹449.5b
Last Updated
2019/10/16 12:47 UTC
Data Sources
Company Financials +
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
| DIVISLAB | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 3.4% | 1.4% |
| 30 Day | 2.9% | 2.2% | 2.7% |
| 90 Day | 3.1% | 0.8% | -1.4% |
| 1 Year | 31.5%30.1% | 20.7%19.8% | 4.3%2.3% |
| 3 Year | 37.6%33.5% | 34.7%31.5% | 20.9%14.9% |
| 5 Year | 99.6%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
10 months ago | Simply Wall St
Was Divi's Laboratories Limited's (NSE:DIVISLAB) Earnings Decline Part Of A Broader Industry Downturn?11 months ago | Simply Wall St
Why Divi's Laboratories Limited (NSE:DIVISLAB) Looks Like A Quality Company11 months ago | Simply Wall St
What Kind Of Shareholder Owns Most Divi's Laboratories Limited (NSE:DIVISLAB) Stock?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
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
| Entity | Individual |
| Shares | 6,600 |
| Max Price | ₹1,628.53 |
| Entity | Individual |
| Shares | 900 |
| Max Price | ₹1,650.00 |
| Entity | Individual |
| Shares | 13,200 |
| Max Price | ₹1,615.97 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | ₹1,650.00 |
| Entity | Individual |
| Shares | 558 |
| Max Price | ₹1,618.00 |
| Entity | Individual |
| Shares | 20,000 |
| Max Price | ₹1,709.00 |
| Entity | Individual |
| Shares | 1,200 |
| Max Price | ₹1,634.83 |
| Entity | Individual |
| Shares | 1,500 |
| Max Price | ₹1,511.95 |
| Entity | Individual |
| Shares | 700 |
| Max Price | ₹1,511.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 3,718 |
| Max Price | ₹1,564.55 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 1,000 |
| Max Price | ₹1,561.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 5,000 |
| Max Price | ₹1,556.08 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 7,000 |
| Max Price | ₹1,547.19 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 1,000 |
| Max Price | ₹1,477.80 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 12,000 |
| Max Price | ₹1,537.63 |
| Entity | Individual |
| Role | Member of the Board of Directors Director of Projects & Whole-Time Director |
| Shares | 3,000 |
| Max Price | ₹1,493.67 |
| Entity | Individual |
| Shares | 3,070 |
| 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532488 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Mar 2003 |
| DIVISLAB | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/16 12:47 |
| End of Day Share Price | 2019/10/15 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/03/31 |
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.