NSEI:DIVISLAB

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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

Stable Share Price: DIVISLAB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

DIVISLAB

-2.9%

IN Life Sciences

-0.6%

IN Market


1 Year Return

77.7%

DIVISLAB

64.5%

IN Life Sciences

2.2%

IN Market

Return vs Industry: DIVISLAB exceeded the Indian Life Sciences industry which returned 64.5% over the past year.

Return vs Market: DIVISLAB exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

DIVISLABIndustryMarket
7 Day-1.5%-2.9%-0.6%
30 Day-7.5%-6.3%0.2%
90 Day36.8%33.1%6.7%
1 Year79.0%77.7%65.4%64.5%3.9%2.2%
3 Year264.9%255.7%168.9%164.2%2.6%-2.4%
5 Year195.4%181.7%170.9%160.5%41.3%30.8%

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?

51.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIVISLAB (₹3093.4) is trading above our estimate of fair value (₹597.2)

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 (51.4x) compared to the IN Life Sciences industry average (41.4x).

PE vs Market: DIVISLAB is poor value based on its PE Ratio (51.4x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: DIVISLAB is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DIVISLAB is overvalued based on its PB Ratio (11.2x) compared to the IN Life Sciences industry average (1.8x).


Next Steps

Future Growth

How is Divi's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIVISLAB's forecast earnings growth (16.2% per year) is above the savings rate (7.2%).

Earnings vs Market: DIVISLAB's earnings (16.2% per year) are forecast to grow slower than the Indian market (25.5% per year).

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

Revenue vs Market: DIVISLAB's revenue (17.5% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: DIVISLAB's revenue (17.5% 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 (23.8%)


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

Quality Earnings: DIVISLAB has high quality earnings.

Growing Profit Margin: DIVISLAB's current net profit margins (26.8%) are higher than last year (26.5%).


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 (17.6%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: DIVISLAB earnings growth over the past year (17.6%) underperformed the Life Sciences industry 17.7%.


Return on Equity

High ROE: DIVISLAB's Return on Equity (21.8%) is considered high.


Next Steps

Financial Health

How is Divi's Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DIVISLAB's short term assets (₹46.8B) exceed its short term liabilities (₹9.3B).

Long Term Liabilities: DIVISLAB's short term assets (₹46.8B) exceed its long term liabilities (₹3.0B).


Debt to Equity History and Analysis

Debt Level: DIVISLAB's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: DIVISLAB's debt to equity ratio has reduced from 0.8% to 0.5% over the past 5 years.

Debt Coverage: DIVISLAB's debt is well covered by operating cash flow (3615.6%).

Interest Coverage: DIVISLAB's interest payments on its debt are well covered by EBIT (321.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIVISLAB's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: DIVISLAB's dividend (0.52%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


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 (26.6%), 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 (26.4% payout ratio).


Next Steps

Management

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

7.1yrs

Average board tenure


CEO

Kiran Divi (44 yo)

0.75

Tenure

₹183,500,000

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 ($USD2.50M) is above average for companies of similar size in the Indian market ($USD1.42M).

Compensation vs Earnings: Kiran's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kiran Divi
CEO & Whole-Time Director0.75yr₹183.50m20.34%
₹ 167.0b
Murali Krishna Divi
Managing Director & Director30yrs₹523.60m2.85%
₹ 23.4b
Venkata Nimmagadda
Executive Director26yrs₹269.10m0.12%
₹ 999.4m
Madhusudana Divi
Director of Projects & Whole-Time Director26yrs₹9.90m0.13%
₹ 1.0b
Nilima Motaparti
Whole-time Director & Director of Commercial3.33yrs₹50.30m20.34%
₹ 167.0b
Gangavarapu Kumar
Non-Executive Independent Director19.58yrs₹2.00m0.00015%
₹ 1.2m
Ranga Ravipati
Non-Executive Independent Director7.92yrs₹2.40mno data
Kantheti Venkata Seshavataram
Non-Executive Independent Director6.33yrs₹2.00mno data
Rameshbabu Nimmagadda
Independent Non-Executive Chairman0.50yr₹2.40mno data
Seru Ganapaty
Independent Additional Director3.25yrs₹2.00mno data
Sunaina Singh
Independent Director1.58yrs₹1.20mno data
Kosaraju Chowdary
Non-Executive Independent Director0.75yrno datano data

7.1yrs

Average Tenure

67yo

Average Age

Experienced Board: DIVISLAB's board of directors are considered experienced (7.1 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 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: ₹821.201b
  • 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
  • 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 Analysis2020/10/20 12:36
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.