Divis Laboratories Ltd logo

Divis Laboratories Ltd

DIVISLAB NSE

Incorporated in 1990, Divis Laboratories Ltd manufactures and exports API's, Intermediates and Nutraceutical ingredients[1]

AI Verdict: HOLD Confidence: 5%

Divis Laboratories is a high-quality, debt-free CDMO/API player with consistent 17% ROE and 11% sales CAGR over 10 years, but at a PE of 70x and 10.7x P/B, the stock prices in significant future growth that has not yet materialized in recent sales performance of just 8.67% over 5 years. The split analyst consensus (48% buy, 33% sell) reflects this valuation tension.

Key Fundamentals

LargecapPharmaceuticalsHealthcare
Market Cap
1.8L Cr
Volatility
Moderate
P/E Ratio
69.4
EBITDA
₹3,367 Cr
Return on Equity
11.79%
Debt to Equity
0
Book Value
₹631.38
EPS
₹63.06
52W High
₹7,071.5
52W Low
₹5,636.5

Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 39.0%

Weaknesses

2
  • Stock is trading at 10.7 times its book value
  • The company has delivered a poor sales growth of 8.67% over past five years.

Growth Rate

Revenue Growth
8.73% ↘
Net Income Growth
15.02% ↘
Cash Flow Change
31.09% ↗
ROE
24.17% ↘
ROCE
23.53% ↗
EBITDA Margin (Avg.)
-11.00% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Divis Laboratories is a high-quality, debt-free CDMO/API player with consistent 17% ROE and 11% sales CAGR over 10 years, but at a PE of 70x and 10.7x P/B, the stock prices in significant future growth that has not yet materialized in recent sales performance of just 8.67% over 5 years. The split analyst consensus (48% buy, 33% sell) reflects this valuation tension.

Bull Case 8
  • Company is virtually debt-free, giving it a clean balance sheet and financial flexibility to invest in capacity expansion without leverage risk
  • 10-year compounded sales growth of 11% demonstrates consistent long-term revenue compounding in a secular pharma outsourcing trend
  • ROE has been stable at 17-18% over 5 and 10 year periods, indicating efficient capital allocation and durable competitive moats in custom synthesis
  • TTM profit growth of 20% signals margin recovery and operating leverage kicking in after a period of muted earnings growth
  • Healthy dividend payout ratio of 39% with 0.44% yield provides shareholder returns even during periods of stock price stagnation
  • 3-year stock CAGR of 24% reflects re-rating potential as market recognizes the CDMO opportunity post-COVID supply chain diversification
  • Market cap of Rs 1,79,244 crore positions Divis as a large-cap with institutional ownership stability and lower liquidity risk
  • 48% of analysts (13 out of 27) have a buy rating, representing the largest single consensus bucket among covering analysts
Bear Case 7
  • PE ratio of 70x is significantly elevated versus pharma sector median of 25-35x, leaving very little margin of safety for execution misses
  • Price-to-book of 10.72x implies the market is paying a massive premium over tangible asset value, increasing downside risk in a de-rating scenario
  • 5-year compounded sales growth of only 9% and noted poor 5-year sales growth of 8.67% does not justify the premium valuation multiple
  • 33% of analysts (9 out of 27) rate the stock a sell, an unusually high proportion for a large-cap quality name suggesting overvaluation concerns
  • 5-year compounded profit growth of just 6% significantly lags the PE multiple of 70x, implying a PEG ratio well above 10x which is extremely stretched
  • 1-year stock CAGR of only 2% indicates the market has already stalled in rewarding the stock at current valuations, limiting near-term upside
  • 10-year stock CAGR of 20% versus current 5-year profit CAGR of 6% suggests historical returns were driven by multiple expansion rather than earnings growth, which is unsustainable

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Neutral 1
  • ₹30 dividend declared for FY26 Jun 11

    Divi's Laboratories recommended a ₹30 per share dividend for FY26, with TDS rates and documentation requirements outlined for resident and non-resident shareholders.

TL;DR: Limited recent news flow for Divi's Laboratories. The company declared a ₹30/share dividend for FY26, signaling steady capital return to shareholders. No notable headwinds or catalysts emerged in the period reviewed, leaving the near-term outlook dependent on broader pharma sector trends and upcoming quarterly results.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,951
1,778
1,909
1,855
2,303
2,118
2,338
2,319
2,585
2,410
2,715
2,604
2,831
Expenses
1,464
1,274
1,430
1,366
1,572
1,496
1,622
1,576
1,699
1,681
1,827
1,714
1,897
Operating Profit
487
504
479
489
731
622
716
743
886
729
888
890
934
OPM %
25%
28%
25%
26%
32%
29%
31%
32%
34%
30%
33%
34%
33%
Other Income
66
81
86
95
79
79
106
82
86
119
145
14
155
Interest
0
0
1
0
2
0
1
0
1
3
8
6
6
Depreciation
87
93
95
95
95
97
99
99
107
112
113
118
120
PBT
466
492
469
489
713
604
722
726
864
733
912
780
963
Tax %
31%
28%
26%
27%
25%
29%
29%
19%
23%
26%
24%
25%
22%
Net Profit
321
356
348
358
538
430
510
589
662
545
689
583
751
EPS in Rs
12.09
13.41
13.11
13.49
20.27
16.2
19.21
22.19
24.94
20.53
25.95
21.96
28.29
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,115
3,776
4,064
3,891
4,946
5,394
6,969
8,960
7,768
7,845
9,360
10,560
Expenses
1,942
2,354
2,615
2,622
3,072
3,568
4,102
5,075
5,397
5,635
6,387
7,119
Operating Profit
1,173
1,423
1,450
1,269
1,874
1,826
2,867
3,885
2,370
2,210
2,973
3,441
OPM %
38%
38%
36%
33%
38%
34%
41%
43%
31%
28%
32%
33%
Other Income
38
93
72
107
154
186
57
112
344
335
348
433
Interest
3
5
3
2
5
7
2
2
2
4
3
23
Depreciation
136
118
123
142
169
186
256
312
343
378
402
463
PBT
1,072
1,393
1,395
1,231
1,855
1,819
2,666
3,684
2,369
2,163
2,916
3,388
Tax %
21%
19%
24%
29%
27%
24%
26%
20%
23%
26%
25%
24%
Net Profit
852
1,126
1,060
877
1,353
1,377
1,984
2,960
1,823
1,600
2,191
2,568
EPS in Rs
32.07
42.41
39.95
33.04
50.96
51.85
74.75
112
68.69
60.27
82.53
96.73
Div. Payout %
31%
24%
25%
30%
31%
31%
27%
27%
44%
50%
36%
31%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
27
53
53
53
53
53
53
53
53
53
53
53
Reserves
3,469
4,240
5,304
5,872
6,904
7,257
9,242
11,675
12,714
13,518
14,916
16,708
Borrowings
27
42
36
63
106
39
5
4
3
3
4
7
Other Liabilities
883
562
762
797
973
1,183
1,471
1,628
1,654
1,886
1,948
3,265
Total Liabilities
4,405
4,898
6,155
6,785
8,036
8,531
10,771
13,360
14,425
15,460
16,921
20,033
Fixed Assets
1,309
1,439
1,559
1,996
2,088
2,782
3,704
4,325
4,723
4,739
5,442
6,528
CWIP
218
264
444
120
492
920
711
470
212
778
1,022
2,113
Investments
733
803
1,631
1,889
1,946
971
0
72
77
82
65
69
Other Assets
2,145
2,392
2,521
2,780
3,511
3,858
6,356
8,493
9,413
9,861
10,392
11,323
Total Assets
4,405
4,898
6,155
6,785
8,036
8,531
10,771
13,360
14,425
15,460
16,921
20,033
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
826
1,038
1,150
776
954
1,216
1,947
1,912
2,460
1,261
1,653
2,738
Investing
-521
-406
-1,140
-478
-685
-83
75
-2,195
-2,708
-269
-804
-2,219
Financing
-303
-631
2
-314
-246
-1,091
-35
-532
-797
-799
-799
-804
Net Cash Flow
3
0
13
-17
23
41
1,987
-816
-1,045
193
50
-285
Free Cash Flow
519
642
774
502
221
33
1,037
1,199
1,987
258
215
221
CFO/OP
88
91
100
82
77
91
90
66
124
74
83
105
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
87
85
81
95
86
96
88
99
84
100
106
103
Inventory Days
350
293
307
314
347
316
329
341
352
364
311
353
Days Payable
68
56
104
96
96
100
117
96
89
94
88
108
Cash Conversion Cycle
368
322
284
313
336
312
300
344
347
370
330
348
Working Capital Days
140
158
147
176
169
180
152
177
188
206
192
195
ROCE %
33%
36%
29%
22%
29%
25%
32%
35%
19%
16%
20%
22%

Shareholding Pattern

As of Mar 2026
Promoters 51.88%
FIIs 20.29%
DIIs 19.22%
Public 6.48%
Others 2.13%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
51.95%
51.95%
51.95%
51.95%
51.94%
51.94%
51.94%
51.94%
51.94%
51.93%
51.93%
51.92%
51.92%
51.90%
51.89%
51.89%
51.89%
51.89%
51.89%
51.88%
51.88%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
14.86%
14.68%
16.16%
17.25%
17.99%
18.01%
19.74%
19.39%
20.08%
20.29%
DIIs
12.64%
12.61%
12.64%
13.40%
13.73%
13.93%
19.54%
20.67%
21.07%
21.23%
20.97%
21.88%
22.21%
21.77%
21.06%
20.54%
20.71%
19.05%
19.76%
19.28%
19.22%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
9.28%
8.81%
8.87%
9.01%
9.27%
9.53%
9.20%
9.53%
9.61%
9.28%
9.02%
8.85%
8.69%
7.77%
7.41%
7.32%
7.17%
7.05%
6.78%
6.61%
6.48%
Others
26.14%
26.64%
26.55%
25.64%
25.06%
24.59%
19.31%
17.86%
17.37%
17.56%
18.08%
2.48%
2.50%
2.41%
2.39%
2.26%
2.22%
2.27%
2.18%
2.15%
2.13%
No. of Shareholders
2,08,203
1,93,883
2,23,403
2,74,505
3,09,397
3,46,905
3,79,257
4,14,847
4,33,621
4,02,155
3,73,860
3,54,482
3,47,629
2,98,310
2,78,899
2,80,601
2,67,755
2,59,825
2,49,634
2,33,844
2,28,006

Documents

Frequently Asked Questions about Divis Laboratories Ltd

What does Divis Laboratories Ltd do?
Incorporated in 1990, Divis Laboratories Ltd manufactures and exports API's, Intermediates and Nutraceutical ingredients[1]
Where is Divis Laboratories Ltd (DIVISLAB) listed?
Divis Laboratories Ltd is listed on the Indian stock exchanges. It is listed on NSE: DIVISLAB and BSE: 532488. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Divis Laboratories Ltd belong to?
Divis Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Divis Laboratories Ltd?
Divis Laboratories Ltd has a market capitalisation of approximately ₹178859.46 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Divis Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Divis Laboratories Ltd is 69.40. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Divis Laboratories Ltd?
Over the past 52 weeks, Divis Laboratories Ltd has traded between a low of ₹5,636.5 and a high of ₹7,071.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Divis Laboratories Ltd pay dividends?
Yes, Divis Laboratories Ltd has a dividend yield of 0.44%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Divis Laboratories Ltd?
Divis Laboratories Ltd has a Return on Equity (ROE) of 11.79%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Divis Laboratories Ltd on Tapetide?
On Tapetide, you can view Divis Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1990, Divis Laboratories Ltd manufactures and exports API's, Intermediates and Nutraceutical ingredients[1]

Website divislabs.com
CEO Dr. Kiran Satchandra Divi B. Pharm., M.Pharm
Employees 10,542
Listed 2003-03-12
Face Value ₹ 2
Issued Size 26,54,68,580

Explore More

More in Healthcare → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List