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Divi's Laboratories Limited
(DIVISLAB)
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Rating:73Outperform
Price Target:
₹9,533.00
▲(31.55% Upside)
Action:Reiterated
Date:08/24/26
The score is supported primarily by high-quality financial performance (very strong balance sheet, solid profitability, and improving operating cash flow). This is partially offset by expensive valuation (high P/E and low yield) and technicals that show a strong uptrend but overbought momentum, which raises near-term risk.
Positive Factors
Fortress balance sheet
Negligible leverage and a steadily expanding equity base give Divi’s substantial financial resilience. This supports continued investment in manufacturing capacity, regulatory compliance and process development without material balance-sheet strain.
Negative Factors
Margin normalization
Profitability remains healthy but has retreated materially from prior peaks, indicating that some earlier pricing, mix or utilization benefits were not fully structural. Sustained margin normalization could limit earnings growth even if revenue expands.
Read all positive and negative factors
Positive Factors
Negative Factors
Fortress balance sheet
Negligible leverage and a steadily expanding equity base give Divi’s substantial financial resilience. This supports continued investment in manufacturing capacity, regulatory compliance and process development without material balance-sheet strain.
Read all positive factors
Divi's Laboratories Limited (DIVISLAB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.27T
Dividend Yield0.35%
Average Volume (3M)6.36K
Price to Earnings (P/E)77.1
Beta (1Y)0.82
Revenue Growth16.35%
EPS Growth26.84%
CountryIN
Employees11,565
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)110.22
Shares Outstanding265,468,570
10 Day Avg. Volume6,055
30 Day Avg. Volume6,356
Financial Highlights & Ratios
PEG Ratio3.57
Price to Book (P/B)9.42
Price to Sales (P/S)14.95
P/FCF Ratio317.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹8,567.50Price Target Upside18.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)123.91
Revenue Forecast (FY)₹125.69B
Divi's Laboratories Limited Business Overview & Revenue Model
Company Description
Divi's Laboratories Limited, established in 1990 and based in Hyderabad, India, operates globally in the production and distribution of generic active pharmaceutical ingredients (APIs), intermediate chemicals, and nutraceuticals. The company's mar...
How the Company Makes Money
Divi's Laboratories makes money primarily by manufacturing and selling pharmaceutical ingredients and by providing contract manufacturing services. Its key revenue streams include: (1) Generic APIs: Divi’s manufactures APIs used by pharmaceutical ...
Divi's Laboratories Limited Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.30B | 105.60B | 93.25B | 77.96B | 76.65B | 87.99B |
| Gross Profit | 55.98B | 45.62B | 54.55B | 45.27B | 44.87B | 57.07B |
| EBITDA | 42.81B | 38.74B | 33.20B | 25.44B | 27.12B | 39.95B |
| Net Income | 29.25B | 25.68B | 21.91B | 16.00B | 18.24B | 29.60B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 200.33B | 169.47B | 154.70B | 144.39B | 133.75B |
| Cash, Cash Equivalents and Short-Term Investments | 32.33B | 32.36B | 37.15B | 37.01B | 41.36B | 27.42B |
| Total Debt | 0.00 | 70.00M | 40.00M | 30.00M | 44.90M | 36.90M |
| Total Liabilities | -167.61B | 32.72B | 19.78B | 18.99B | 16.72B | 16.47B |
| Stockholders Equity | 167.61B | 167.61B | 149.69B | 135.71B | 127.67B | 117.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.01B | 4.97B | 5.08B | 2.58B | 19.86B | 11.99B |
| Operating Cash Flow | 16.45B | 30.17B | 19.46B | 12.61B | 24.59B | 19.12B |
| Investing Cash Flow | -12.61B | -25.03B | -10.99B | -2.69B | -27.07B | -21.95B |
| Financing Cash Flow | -7.20B | -7.99B | -7.97B | -7.99B | -7.97B | -5.32B |
Divi's Laboratories Limited Technical Analysis
Positive
7246.65
Price Trends
7462.48
Positive
6960.83
Positive
6635.93
Positive
Market Momentum
323.45
Positive
71.47
Negative
60.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIVISLAB, the sentiment is Positive. The current price of 7246.65 is below the 20-day moving average (MA) of 8315.47, below the 50-day MA of 7462.48, and above the 200-day MA of 6635.93, indicating a bullish trend. The MACD of 323.45 indicates Positive momentum. The RSI at 71.47 is Negative, neither overbought nor oversold. The STOCH value of 60.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DIVISLAB.
Divi's Laboratories Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹2.27T | 77.08 | ― | 0.41% | 16.35% | 26.84% | |
72 Outperform | ₹980.26B | 29.96 | ― | 0.69% | -0.92% | -41.75% | |
69 Neutral | ₹932.08B | 25.13 | ― | 0.26% | 9.09% | 9.61% | |
66 Neutral | ₹298.87B | 59.04 | ― | 0.18% | 78.33% | 182.61% | |
64 Neutral | ₹212.72B | 31.61 | ― | 0.18% | 24.83% | 36.88% | |
60 Neutral | ₹980.48B | 88.94 | ― | 0.12% | 22.62% | 114.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:DIVISLAB
Divi's Laboratories Limited
8,500.00
2,278.66
36.63%
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Divi's Laboratories Limited Corporate Events
Divi’s Laboratories Posts Q1 FY27 Earnings Call Transcript for Investors
Aug 6, 2026
Divi’s Laboratories Limited has released the transcript of its Q1 FY27 earnings conference call for the quarter ended June 30, 2026, which was held on August 1, 2026. The document, now available on the company’s investor relations webs...
Divi’s Laboratories to Close Trading Window Ahead of Q1 FY27 Results
Jun 30, 2026
Divi’s Laboratories Limited has announced the closure of its trading window for company securities starting July 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations, 2015 and its internal code of conduct. The window...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.