Divis Laboratories Ltd - Stock Valuation and Financial Performance

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

Divis Lab Share Price

5,553.25 152.75 2.83%
as on 08-Oct'24 16:01

DeciZen - make an informed investing decision on Divis Lab

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Divis Laboratories stock performance -

mw4me loader
P/E Ratio (CD):
85.64
Market Cap:
1,43,366.3 Cr.
52-wk low:
3,300
52-wk high:
5,582.9

Is Divis Laboratories Ltd an attractive stock to invest in?

1. Is Divis Laboratories Ltd a good quality company?

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

2. Is Divis Laboratories Ltd 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 Overvalued zone.

3. Is Divis Laboratories Ltd a good buy now?

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

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

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 33.1%35.6%28.8%21.7%28.5%25.4%32.1%35.1%19.4%16.5%-
Value Creation
Index
1.52.21.60.91.51.31.92.10.70.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,1153,7764,0643,8914,9465,3946,9698,9607,7677,8458,185
Sales YoY Gr.-21.2%7.6%-4.3%27.1%9.1%29.2%28.6%-13.3%1%-
Adj EPS 32.241.54132.550.249.475110.565.359.663.1
YoY Gr.-28.9%-1.4%-20.7%54.5%-1.5%51.8%47.4%-40.9%-8.8%-
BVPS (₹) 131.7161.7201.8223.2262.1275.4350.2441.8481.8512.1527.4
Adj Net
Profit
8551,1021,0878621,3311,3111,9902,9331,7341,5821,674
Cash Flow from Ops. 8261,0381,1507769541,2161,9471,9122,4591,261-
Debt/CF from Ops. 0000.10.100000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.8%9.7%4%1%
Adj EPS 7.1%3.5%-7.4%-8.8%
BVPS16.3%14.3%13.5%6.3%
Share Price 20.4% 27.5% 3.1% 49.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
26.528.322.515.320.718.42427.914.21212.1
Op. Profit
Mgn %
37.737.736.632.637.933.941.243.330.528.228.4
Net Profit
Mgn %
27.529.226.722.226.924.328.632.722.320.220.5
Debt to
Equity
0000000000-
Working Cap
Days
297245268371307294247239293277199
Cash Conv.
Cycle
173156144154142153126130182183175

Recent Performance Summary

Sales growth is good in last 4 quarters at 12.17%

Return on Equity has declined versus last 3 years average to 12.10%

Sales growth has been subdued in last 3 years 4.02%

Net Profit has been subdued in last 3 years -7.36%

Latest Financials - Divis Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 62.6 63.1
TTM Sales (₹ Cr.) 7,998 8,185
BVPS (₹.) 524.1 527.4
Reserves (₹ Cr.) 13,861 13,948
P/BV 10.30 10.24
PE 86.31 85.64
From the Market
52 Week Low / High (₹) 3300.00 / 5582.85
All Time Low / High (₹) 7.70 / 5582.85
Market Cap (₹ Cr.) 1,43,366
Equity (₹ Cr.) 53.1
Face Value (₹) 2
Industry PE 47

Management X-Ray of Divis Lab:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Divis Lab

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales3,1153,7764,0643,8914,9465,3946,9698,9607,7677,845
Operating Expenses 1,9492,3582,6172,6293,0733,5714,1085,0795,3985,639
Manufacturing Costs318350368411462540617758897902
Material Costs1,2131,5051,5341,5341,8252,1092,3242,9673,0533,129
Employee Cost 2903615004565426218269469751,094
Other Costs 127142215227244302342407473514
Operating Profit 1,1661,4181,4471,2631,8731,8232,8613,8812,3692,206
Operating Profit Margin (%) 37.4%37.6%35.6%32.4%37.9%33.8%41.1%43.3%30.5%28.1%
Other Income 45977511315619063116345339
Interest 3532572224
Depreciation 136118123142169186256312343378
Exceptional Items 0000000000
Profit Before Tax 1,0721,3931,3951,2311,8551,8192,6663,6842,3692,163
Tax 221267335354502443682723545563
Profit After Tax 8521,1261,0608771,3531,3771,9842,9601,8241,600
PAT Margin (%) 27.3%29.8%26.1%22.5%27.3%25.5%28.5%33.0%23.5%20.4%
Adjusted EPS (₹)32.142.440.033.051.051.974.8111.568.860.4
Dividend Payout Ratio (%)31%24%25%30%31%31%27%27%44%50%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3,4954,2935,3575,9256,9577,3109,29511,72812,76713,571
Share Capital 27535353535353535353
Reserves 3,4694,2405,3045,8726,9047,2579,24211,67512,71413,518
Minority Interest0000000000
Debt26423663106340000
Long Term Debt1000000000
Short Term Debt25413663106340000
Trade Payables227233446411492591763796762824
Others Liabilities 1,3643301,5901,9481,2401,4911,3292,0951,3341,542
Total Liabilities 5,1124,8987,4298,3478,7959,42511,38714,61914,86315,937

Fixed Assets

Gross Block1,9532,1961,7942,3732,6343,5144,6925,6246,3656,760
Accumulated Depreciation6447572353775467329881,2991,6432,021
Net Fixed Assets1,3091,4391,5591,9962,0882,7823,7044,3254,7224,739
CWIP 218264444120492920711470212778
Investments 7338031,6311,8891,9469710727782
Inventories1,1631,2081,3201,3511,7721,8642,1452,8293,0003,184
Trade Receivables7428819011,0141,1631,4131,6772,4241,7932,156
Cash Equivalents 6573791121151232,1562,8194,2143,980
Others Assets8832301,4961,8641,2191,3529951,6818451,018
Total Assets 5,1124,8987,4298,3478,7959,42511,38714,61914,86315,937

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 8261,0381,1507769541,2161,9471,9122,4591,261
PBT 1,0721,3931,3951,2311,8551,8192,6663,6842,3692,163
Adjustment 91619432846018924014481
Changes in Working Capital -126-155-37-219-500-218-264-1370419-607
Tax Paid -211-261-302-269-484-445-644-641-473-376
Cash Flow From Investing Activity -521-406-1,140-478-685-8375-2,195-2,707-269
Capex -307-396-377-274-733-1,183-910-713-473-1,003
Net Investments -253-67-831-285-431,056928-1,549-2,439434
Others 3956688191435767205300
Cash Flow From Financing Activity -303-6312-314-246-1,091-35-532-797-799
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -1000000000
Interest Paid -1-2-2-1-4-6-100-2
Dividend Paid -265-5310-319-265-8500-531-796-796
Others -36-985623-236-34-1-1-1
Net Cash Flow 3013-1723411,987-816-1,045193
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)26.3728.9121.9815.552119.323.928.1614.8912.15
ROCE (%)33.0635.5728.7521.6828.525.3632.0735.0619.3616.46
Asset Turnover Ratio0.670.760.670.50.580.60.670.690.530.51
PAT to CFO Conversion(x)0.970.921.080.880.710.880.980.651.350.79
Working Capital Days
Receivable Days85787989808681839891
Inventory Days122114112125114122105101136143
Payable Days5756811029094106969393

Divis Laboratories Ltd Stock News

Divis Laboratories Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Divis Lab on 08-Oct-2024 16:01 is ₹5,553.3.
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 08-Oct-2024 16:01 the market cap of Divis Lab stood at ₹1,43,366.3.
The latest P/E ratio of Divis Lab as of 08-Oct-2024 16:01 is 86.31.
The latest P/B ratio of Divis Lab as of 08-Oct-2024 16:01 is 10.30.
The 52-week high of Divis Lab is ₹5,582.9 and the 52-week low is ₹3,300.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Divis Lab is ₹7,998 ( 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
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