Divis Laboratories Ltd - Stock Valuation and Financial Performance

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

Divis Lab Share Price

3,779.20 40.55 1.08%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Divis Lab

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Divis Laboratories stock performance -

mw4me loader
P/E Ratio (CD):
72.54
Market Cap:
1,00,325.9 Cr.
52-wk low:
3,050.2
52-wk high:
4,072.4

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 Fair zone.

3. Is Divis Laboratories Ltd 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.

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 27.2%26.4%28.1%22.4%15.2%20.5%18.3%23.9%27.9%14.2%-
Value Creation
Index
1.01.01.51.00.40.80.61.11.50.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,5323,1153,7764,0643,8914,9465,3946,9698,9607,7687,493
Sales YoY Gr.-23%21.2%7.6%-4.3%27.1%9.1%29.2%28.6%-13.3%-
Adj EPS 28.232.241.54132.550.249.475110.565.352.1
YoY Gr.-14.1%28.9%-1.4%-20.7%54.5%-1.5%51.8%47.4%-40.9%-
BVPS (₹) 111.6131.7161.7201.8223.2262.1275.4350.2441.8481491
Adj Net
Profit
7498551,1021,0878621,3311,3111,9902,9331,7331,383
Cash Flow from Ops. 5578261,0381,1507769541,2161,9471,9122,460-
Debt/CF from Ops. 00000.10.10000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.3%14.8%12.9%-13.3%
Adj EPS 9.8%15%9.8%-40.9%
BVPS17.6%16.6%20.4%8.9%
Share Price 18.8% 16.9% 0.5% 18.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
27.426.528.322.515.320.718.42427.914.210.7
Op. Profit
Mgn %
40.237.737.736.632.637.933.941.243.330.526.2
Net Profit
Mgn %
29.627.529.226.722.226.924.328.632.722.318.5
Debt to
Equity
0000000000-
Working Cap
Days
300297245268371307294247239293212
Cash Conv.
Cycle
179173156144154142153126130182187

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.92%

Return on Equity has declined versus last 3 years average to 10.70%

Net Profit has been subdued in last 3 years 9.76%

Sales growth is not so good in last 4 quarters at -8.04%

Latest Financials - Divis Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 51.4 52.1
TTM Sales (₹ Cr.) 7,314 7,493
BVPS (₹.) 488 491
Reserves (₹ Cr.) 12,902 12,982
P/BV 7.74 7.70
PE 73.56 72.54
From the Market
52 Week Low / High (₹) 3050.15 / 4072.35
All Time Low / High (₹) 7.70 / 5425.00
Market Cap (₹ Cr.) 1,00,326
Equity (₹ Cr.) 53.1
Face Value (₹) 2
Industry PE 48

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,5323,1153,7764,0643,8914,9465,3946,9698,9607,768
Operating Expenses 1,5171,9492,3582,6172,6293,0733,5714,1085,0795,398
Manufacturing Costs268318350368411462540617758898
Material Costs9141,2131,5051,5341,5341,8252,1092,3242,9673,054
Employee Cost 232290361500456542621826946975
Other Costs 102127142215227244302342407472
Operating Profit 1,0151,1661,4181,4471,2631,8731,8232,8613,8812,369
Operating Profit Margin (%) 40.1%37.4%37.6%35.6%32.4%37.9%33.8%41.1%43.3%30.5%
Other Income 7145977511315619063116345
Interest 3353257222
Depreciation 92136118123142169186256312343
Exceptional Items 0000000000
Profit Before Tax 9911,0721,3931,3951,2311,8551,8192,6663,6842,369
Tax 218221267335354502443682723545
Profit After Tax 7738521,1261,0608771,3531,3771,9842,9601,823
PAT Margin (%) 30.5%27.3%29.8%26.1%22.5%27.3%25.5%28.5%33.0%23.5%
Adjusted EPS (₹)29.132.142.440.033.051.051.974.8111.568.7
Dividend Payout Ratio (%)34%31%24%25%30%31%31%27%27%44%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,9633,4954,2935,3575,9256,9577,3109,29511,72812,767
Share Capital 27275353535353535353
Reserves 2,9373,4694,2405,3045,8726,9047,2579,24211,67512,714
Minority Interest0000000000
Debt182642366310634000
Long Term Debt2100000000
Short Term Debt162541366310634000
Trade Payables152227233446411492591763796763
Others Liabilities 1,1081,3643301,5901,9481,2401,4911,3292,0951,327
Total Liabilities 4,2415,1124,8987,4298,3478,7959,42511,38714,61914,857

Fixed Assets

Gross Block1,7401,9532,1961,7942,3732,6343,5144,6925,6246,365
Accumulated Depreciation5186447572353775467329881,2991,642
Net Fixed Assets1,2221,3091,4391,5591,9962,0882,7823,7044,3254,723
CWIP 144218264444120492920711470212
Investments 5027338031,6311,8891,94697107277
Inventories9321,1631,2081,3201,3511,7721,8642,1452,8293,000
Trade Receivables7247428819011,0141,1631,4131,6772,4241,793
Cash Equivalents 416573791121151232,1562,8194,213
Others Assets6768832301,4961,8641,2191,3529951,681839
Total Assets 4,2415,1124,8987,4298,3478,7959,42511,38714,61914,857

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5578261,0381,1507769541,2161,9471,9122,460
PBT 9911,0721,3931,3951,2311,8551,8192,6663,6842,369
Adjustment 78916194328460189240145
Changes in Working Capital -298-126-155-37-219-500-218-264-1370419
Tax Paid -213-211-261-302-269-484-445-644-641-473
Cash Flow From Investing Activity -305-521-406-1,140-478-685-8375-2,195-2,708
Capex -246-307-396-377-274-733-1,183-910-713-473
Net Investments -91-253-67-831-285-431,056928-1,549-2,439
Others 323956688191435767205
Cash Flow From Financing Activity -248-303-6312-314-246-1,091-35-532-797
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0-100000000
Interest Paid -1-1-2-2-1-4-6-100
Dividend Paid -199-265-5310-319-265-8500-531-796
Others -48-36-985623-236-34-10
Net Cash Flow 33013-1723411,987-816-1,045
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)28.3126.3728.9121.9815.552119.323.928.1614.89
ROCE (%)36.0433.0635.5728.7521.6828.525.3632.0735.0619.36
Asset Turnover Ratio0.660.670.760.670.50.580.60.670.690.53
PAT to CFO Conversion(x)0.720.970.921.080.880.710.880.980.651.35
Working Capital Days
Receivable Days88857879898086818398
Inventory Days127122114112125114122105101136
Payable Days6257568110290941069693

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 12-Apr-2024 16:59 is ₹3,779.2.
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 12-Apr-2024 16:59 the market cap of Divis Lab stood at ₹1,00,325.9.
The latest P/E ratio of Divis Lab as of 12-Apr-2024 16:59 is 73.56.
The latest P/B ratio of Divis Lab as of 12-Apr-2024 16:59 is 7.74.
The 52-week high of Divis Lab is ₹4,072.4 and the 52-week low is ₹3,050.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Divis Lab is ₹7,314 ( 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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