SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Divis Laboratories Ltd

BSE: 532488 NSE: DIVISLAB ISIN: INE361B01024
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Divis Laboratories Ltd belong to?
Divis Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Divis Laboratories Ltd a good quality company?
Divis Laboratories Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Divis Laboratories Ltd undervalued or overvalued?
Divis Laboratories Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Divis Laboratories Ltd a good buy now?
Divis Laboratories Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Divis Laboratories Ltd?
Divis Laboratories Ltd revenue growth is 19.3% for FY-2025 , which is above its 5 year CAGR of 11.7% , indicating faster growth.
Q.2 Gross Profit margin of Divis Laboratories Ltd?
Divis Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.3% for FY-2025 , which is in line with its 5 year median of 35.3% , indicating stable margins.
Q.3 Operating Profit Margin of Divis Laboratories Ltd?
Divis Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.76% for FY-2025 , which is in line with its 5 year median of 31.76% indicating stable margins.
Q.4 Net Profit Margin of Divis Laboratories Ltd?
Divis Laboratories Ltd Net Profit Margin is 23.41% for FY-2025 , is below with its 5 year median of 23.48%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 35.3 35.3
Operating Profit Margin 31.76 31.76
Net Profit Margin 23.41 23.48
Q.5 Return on Asset of Divis Laboratories Ltd?
Divis Laboratories Ltd Return on Asset is 13.02%, which is in line with its 5 year historical median of 13.02%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Divis Laboratories Ltd?
Divis Laboratories Ltd Return on equity is 15.35% for FY-2025 , which is in line with its historical median of 15.35%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Divis Laboratories Ltd?
Divis Laboratories Ltd Return on capital employed is 20.45% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Divis Laboratories Ltd?
Divis Laboratories Ltd Cash conversion cycle is 170 days, below its historical median of 170 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.56 0.56
ROE 15.35 15.35
ROCE 20.45 20.45
Cash Conversion Cycle 170 days 170 days
Q.9 Debt to Equity ratio of Divis Laboratories Ltd?
Divis Laboratories Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.35 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Divis Laboratories Ltd?
Divis Laboratories Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Divis Laboratories Ltd?
Promoters hold 51.88% of the Divis Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Divis Laboratories Ltd vs industry peers?
Divis Laboratories Ltd revenue CAGR is 11.65% , compared to the industry median CAGR of 10.76% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 9,360 26,752.9
Gross Profit 3,304.1 7,512.8
Operating Profit 2,969 7,224.5
Net Profit 2,191 5,272.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.56 0.89
ROE 15.35 19.42
ROCE 20.45 19.32
Cash Conversion Cycle (days) 170.24 111

Valuation & price assessment

Q.1 Stock return of Divis Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.1% 10.7% 24.8% 6.7%
Q.3 Valuation ratios of Divis Laboratories Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 67.27 53.57 40.28
Price to Book 10.42 10.96 2.77
Price to Sales 16.17 14.35 2.65
EV to EBITDA 42.7 36.95 15.67

Check more companies

1. Sun Pharma Inds.
2. Divis Lab
3. Torrent Pharma
4. Cipla
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×