Divis Laboratories Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
3641.90 61.40 (1.71%)

DeciZen - Make an Informed Decision on Divis Lab

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Divis Lab Price Chart

P/E Ratio (CD) :
31.13
Market Cap :
96,681 Cr.
52-wk low :
3,365.1
52-wk high :
5,425
Bole Toh?

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 Fair zone.

3. Is Divis Laboratories Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Divis Laboratories Ltd is likely to Fall 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 25.3%27.2%26.4%28.1%22.4%15.2%20.5%18.3%23.9%27.9%-
Value Creation Index 0.91.01.01.51.00.40.80.61.11.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,1452,5323,1153,7764,0643,8914,9465,3946,9698,9609,254
YoY Gr. Rt. %-18.1%23%21.2%7.6%-4.3%27.1%9.1%29.2%28.6%-
Adj EPS 22.428.232.241.54132.550.249.475110.5117
YoY Gr. Rt. %-26%14.1%28.9%-1.4%-20.7%54.5%-1.5%51.8%47.4%-
BVPS (₹) 94.2111.6131.7161.7201.8223.2262.1275.4350.2441.8468.2
Adj Net Profit 5947498551,1021,0878621,3311,3111,9902,9333,105
Cash Flow from Ops. 4805578261,0381,1507769541,2161,9471,912-
Debt/CF from Ops. 0.100000.10.1000-

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 18.7171926.2
Share Price 21.2% 30.8% 30.7% -28.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 25.727.426.528.322.515.320.718.42427.925.7
Op. Profit Mgn % 38.140.237.737.736.632.637.933.941.243.341.9
Net Profit Mgn % 27.729.627.529.226.722.226.924.328.632.733.6
Debt to Equity 0000000000-
Working Cap Days 2703002972452683713072942472390
Cash Conv. Cycle 1711791731561441541421531261300

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 25.70%

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%

Sales growth is good in last 4 quarters at 29.00%

No data to display

Latest Financials - Divis Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 116.3 117
TTM Sales (₹ Cr.) 9,134 9,254
BVPS (₹.) 466.5 468.2
Reserves (₹ Cr.) 12,330 12,377
P/BV 7.81 7.78
PE 31.31 31.13
From the Market
52 Week Low / High (₹) 3365.10 / 5425.00
All Time Low / High (₹) 7.70 / 5425.00
Market Cap (₹ Cr.) 96,681
Equity (₹ Cr.) 53.1
Face Value (₹) 2
Industry PE 37.9

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 (%)

News

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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