Is Divis Laboratories a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Divis Laboratories Ltd is a good quality company .

Is Divis Laboratories undervalued or overvalued?

The key valuation ratios of Divis Laboratories Ltd's currently when compared to its past seem to suggest it is in the Fair zone .

What is Divis Laboratories share price return in the past 10 years ?

Divis Laboratories Ltd share price has appreciated 19.1% annually (CAGR) over the past ten years.

Is Divis Laboratories a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Divis Laboratories Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

Divis Laboratories Ltd Stock Analysis

Item: Divis Laboratories Ltd
Rating: 4
Author: MoneyWorks4me Rating

BSE: 532488 | NSE: DIVISLAB | Pharmaceuticals & Drugs | Large Cap

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BSE Share Price 31-Mar-2023 18:02
2825.75 7.05 (0.25%)

10 Year X-Ray of Divis Lab:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ Value Creation Index Colour Code Guide ⓘ
	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	TTM
ROCE % ⓘ	25.3%	27.2%	26.4%	28.1%	22.4%	15.2%	20.5%	18.3%	23.9%	27.9%	-
Value Creation Index ⓘ	0.9	1.0	1.0	1.5	1.0	0.4	0.8	0.6	1.1	1.5	-

Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,145	2,532	3,115	3,776	4,064	3,891	4,946	5,394	6,969	8,960	8,335
YoY Gr. Rt. %	-	18.1%	23%	21.2%	7.6%	-4.3%	27.1%	9.1%	29.2%	28.6%	-
Adj EPS ⓘ	22.4	28.2	32.2	41.5	41	32.5	50.2	49.4	75	110.5	90.3
YoY Gr. Rt. %	-	26%	14.1%	28.9%	-1.4%	-20.7%	54.5%	-1.5%	51.8%	47.4%	-
BVPS (₹) ⓘ	94.2	111.6	131.7	161.7	201.8	223.2	262.1	275.4	350.2	441.8	468.7
Adj Net Profit ⓘ	594	749	855	1,102	1,087	862	1,331	1,311	1,990	2,933	2,397
Cash Flow from Ops. ⓘ	480	557	826	1,038	1,150	776	954	1,216	1,947	1,912	-
Debt/CF from Ops. ⓘ	0.1	0	0	0	0	0.1	0.1	0	0	0	-

CAGR ⓘ CAGR Colour Code Guide ⓘ
	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	17.2%	17.1%	21.9%	28.6%
Adj EPS ⓘ	19.4%	22%	30.1%	47.4%
BVPS ⓘ	18.7	17	19	26.2
Share Price	19.1%	21%	12.4%	-35.8%

Key Financial Parameters ⓘ Performance Ratio Colour Code Guide ⓘ
	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	TTM
Return on Equity % ⓘ	25.7	27.4	26.5	28.3	22.5	15.3	20.7	18.4	24	27.9	19.8
Op. Profit Mgn % ⓘ	38.1	40.2	37.7	37.7	36.6	32.6	37.9	33.9	41.2	43.3	35.8
Net Profit Mgn % ⓘ	27.7	29.6	27.5	29.2	26.7	22.2	26.9	24.3	28.6	32.7	28.8
Debt to Equity ⓘ	0	0	0	0	0	0	0	0	0	0	-
Working Cap Days ⓘ	270	300	297	245	268	371	307	294	247	239	0
Cash Conv. Cycle ⓘ	171	179	173	156	144	154	142	153	126	130	0

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 21.90%

Net Profit is growing at healthy rate in last 3 years 30.13%

Return on Equity has declined versus last 3 years average to 19.80%

Sales growth is not so good in last 4 quarters at 4.41%

Latest Financials - Divis Laboratories Ltd.

	Standalone	Consolidated
TTM EPS (₹)	89.4	90.3
TTM Sales (₹ Cr.)	8,212	8,335
BVPS (₹.) ⓘ	466.6	468.7
Reserves (₹ Cr.) ⓘ	12,333	12,388
P/BV ⓘ	6.06	6.03
PE ⓘ	31.62	31.30

From the Market
52 Week Low / High (₹)	2730.00 / 4640.95
All Time Low / High (₹)	7.70 / 5425.00
Market Cap (₹ Cr.)	75,015
Equity (₹ Cr.)	53.1
Face Value (₹)	2
Industry PE ⓘ	36.2

Management X-Ray of Divis Lab :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Divis Lab

Price Calculator

Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Divis Lab

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

News

Divis Laboratories Ltd FAQs

What is the share price of Divis Lab ?

Company share prices are keep on changing according to the market conditions. The closing price of Divis Lab on 31-Mar-2023 18:02 is : 2,825.8.

What is the market cap of Divis Lab ?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Mar-2023 18:02 the market cap of Divis Lab stood at ₹ 75,014.8.

What is the PE ratio of Divis Lab ?

The latest PE ratio of Divis Lab as of 31-Mar-2023 18:02 is 31.62.

What is the PB ratio of Divis Lab?

The latest PB ratio of Divis Lab as of 31-Mar-2023 18:02 is 6.06

What is the 52-week high and low of Divis Lab ?

The 52-week high of Divis Lab is ₹ 4,641 and the 52-week low is ₹ 2,730.

What is the TTM revenue of Divis Lab ?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Divis Lab is ₹ 8,212 ( Cr.) .

About Divis Laboratories Ltd

Divi’s Laboratories Limited is a Company limited by shares, incorporated and domiciled in India. The Company is engaged in the manufacture of Active Pharmaceutical ingredients (API’s), Intermediates and Nutraceutical ingredients with predominance in exports. In addition to generic business, the Company, through its custom synthesis business, supports innovator pharma companies for their patented products business right from gram scale requirements for clinical trials to launch as well as late life cycle management. The Company is a public limited company and the Company’s equity shares are listed in BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) in India.

Business area of the company

The Company manufactures Generic APIs, Nutraceutical Ingredients and offers Custom Synthesis of APIs to Big Pharma providing a competitive advantage over the entire life cycle of the products.

Business Segments

Generic APIs
Custom Synthesis
Nutraceuticals

Products

Capecitabine
Carbidopa
Diltiazem HCl
Dextromethorphan Base
Dextromethorphan HBr
Fosphenytoin Sodium
Gabapentin
Iopamidol
Irbesartan
Levetiracetam
Levodopa
Mesalamine
Nabumetone
Naproxen
Naproxen Sodium
Niacin
Olmesartan Medoxomil
Phenylephrine HCl
Pregabalin
Proguanil HCl
Quetiapine Fumarate
Tamsulosin HCl
Telmisartan
Triprolidine HCl
Valacyclovir HCl
Valsartan
Venlafaxine HCl
Vigabatrin

Awards

2001:

Occupational Health and Safety Management System (OHSAS-18001)

2002:

May Day Award for Best Management

2003:

Shreshtha Suraksha Puraskar
Appreciation certificate for Meritorious performance in implementing the programmes of ‘Safe Guarding the Environment and Pollution Control’
Viswakarma Rashtriya Puraskar

2004:

Good Practice in Cleaner Production and Pollution Control

2005:

National Award for Excellence Water Management 2005
Appreciation certificate for Meritorious performance in implementing the programmes of ‘Safe Guarding the Environment and Pollution Control & Plantation work’.
May Day Award for Best Management

2006:

National Award for Excellence Water Management and Certificate for Water efficient unit.
National Award for Excellence Water Management and Certificate for Water efficient unit - Beyond the fence.
Appreciation certificate for ‘Best Cleaner Production Practices and Waste Minimization Techniques’.

2007:

Appreciation certificate for ‘Best Cleaner Production Practices and Waste Minimization Techniques’.

2008:

Appreciation certificate for ‘Best Cleaner Production Practices and Waste Minimization Techniques’ on the Occasion of the World Environment
Finalist Certificate

2009:

Certified and Awarded for ‘Best Green Belt Development’
Occupational Health and Safety Management System (OHSAS-18001:2007)
ISO 14001: 2004 (Re-Certification) ‘Environment Management System’

2011:

Best Green Belt Development.

2012:

India Business Leader Award ‘First Generation Entrepreneur of the Year’
Occupational Health and Safety Management System OHSAS 1800:2007 (Re-certification)
ISO 14001: 2004 (Re-Certification) ‘Environment Management System’.

2013:

ISO 14064 - 1: 2006 Green House Gas Accounting verification.
May Day award for Best Management

2014:

Winner of ‘Special Commendation’ for Golden Peacock Award for Corporate Social Responsibility

2015:

Occupational Health and Safety Management System OHSAS 1800:2007 (Re-certification)
May Day award for Best Management
ISO 14001: 2004 (Re-Certification) ‘Environment Management System’.

2018:

Occupational Health and Safety Management System OHSAS 1800:2007 (Re-certification)
ISO 14001 : 2018 (Re- certification) ‘Environmental Management System’.
May Day award for Best Management

Milestones

1990: Inception of Divi’s as Divi’s Research Centre(DRC)
1995: Setup First Manufacturing facility(Unit-1) near Hyderabad
2000: First USFDA Inspection
2002: Commenced New Manufacturing Facility (Unit 2) near Vishakhapatnam
2003: Divi’s Labs listed on Indian Stock Exchange
2007: Set up Nutraceuticals facility at Unit 2
2008: First MFDS(Korea) inspection
2010: Established New Research Centre at Hyderabad
2011: First EU GMP and Japan PMDA Inspection
2012: First TGA Inspection
2013: First Slovenian Medicines Agency inspection for Unit-II
2014: Divi’s reaches a milestone of 8700 employees
2014: First COFEPRIS inspection
2015: New corporate office inaugurated at Hyderabad
2015: New Pilot block with 160 Reactors and Kilo Lab
2016: First Anvisa (Brazil) inspection
2017: Divi’s reaches a milestone of 11,000 employees and becomes one of the largest employers in the combined state of Telangana/Andhra Pradesh
2017: Reaches the milestone of being one among the top 3 API manufacturers in the world and one among the top API companies in Hyderabad
2018: Market capital of $5B Reached
2018: 10 new production blocks commissioned
2018: Expanded the product portfolio to over 30 products
2019: Setting up Manufacturing plant at Kakinada
2019: Additional investment of $250M towards expansion of production blocks in Unit -I and Unit- II