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Divis Laboratories Ltd Stock Analysis

Large Cap
Evaluated by 6271 users | BSE: 532488 | NSE: DIVISLAB |
Pharmaceuticals & Drugs

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Divis Laboratories Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 25.52%26.18%25.26%27.24%26.36%28.14%22.39%15.38%20.17%17.84%
Value Creation Index 0.700.820.740.880.820.940.540.060.390.23
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3171,8642,1452,5323,1153,7764,0643,8914,9465,394
Y-o-Y Gr. Rt.-41.6%15.1%18.1%23%21.2%7.6%-4.3%27.1%9.1%
Adjusted EPS (Rs.) 16.1619.6422.3928.2232.2141.5240.9532.9149.4648.21
Y-o-Y Gr. Rt.-21.5%14%26%14.1%28.9%-1.4%-19.6%50.3%-2.5%
Book Value per Share (Rs.) 67.7480.2994.2111.63131.67161.73201.82223.2262.09275.38
Adjusted Net Profit 4295215947498551,1021,0878741,3131,280
Net Op. Cash Flow (Rs. Cr.) 3273384805578261,0381,1507769541,216
Debt to Cash Flow from Ops 0.070.160.070.030.030.040.030.080.110.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Divis Laboratories Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17%11.6%9.9%9.1%
Adjusted EPS 12.9%8.4%5.6%-2.5%
Book Value per Share 16.915.910.95.1
Share Price 28% 29.5% 48.2% 58.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.8626.5425.6727.4226.4828.322.5315.4920.3917.94
Operating Profit Margin (%) 38.0737.1438.0840.237.6737.6736.6433.0537.933.86
Net Profit Margin (%) 32.5527.9727.7229.5827.4529.1926.7422.4526.5523.72
Debt to Equity 0.010.030.010.010.010.010.010.010.020
Working Capital Days 250229270300297245268371309297
Cash Conversion Cycle 164162171179173156144154143155
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.95%
Institutions 36.61%
Non-Institutions 11.45%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Divis Laboratories Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Divis Laboratories Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Divis Laboratories Ltd's performance infers:

Divis Laboratories Ltd earnings have grown by 8.4%, whereas share price has appreciated 29.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Divis Laboratories Ltd share prices over the last 10 years. Here is what we found out:

Divis Laboratories Ltd share price has appreciated 26.5% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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