Divi's Laboratories Limited (IN:DIVISLAB)
:DIVISLAB
Want to see IN:DIVISLAB full AI Analyst Report?
Top Page
Divi's Laboratories Limited
(DIVISLAB)
Select Model
Select Model
Rating:75Outperform
Price Target:
₹7,746.00
▲(17.31% Upside)
Action:Reiterated
Date:05/24/26
The score is driven primarily by strong financial quality (high profitability, improving operating cash flow, and an exceptionally conservative balance sheet). Technicals add support via bullish trend and momentum, though near-overbought signals temper it. Valuation is the biggest drag due to the very high P/E and low dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage and rising equity provide durable financial flexibility to fund capex, absorb cyclical downturns, and pursue acquisitions or R&D without reliance on external debt. This structural strength supports long-term resilience and strategic optionality across pharma cycles.
Negative Factors
Uneven free cash flow conversion
Volatile free cash flow and inconsistent conversion of earnings to free cash reduce predictability for dividends, buybacks or debt reduction. Structural capex needs, working-capital swings or project timing can constrain durable shareholder returns and complicate long-term planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and rising equity provide durable financial flexibility to fund capex, absorb cyclical downturns, and pursue acquisitions or R&D without reliance on external debt. This structural strength supports long-term resilience and strategic optionality across pharma cycles.
Read all positive factors
Divi's Laboratories Limited (DIVISLAB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.77T
Dividend Yield0.46%
Average Volume (3M)6.36K
Price to Earnings (P/E)68.6
Beta (1Y)0.75
Revenue Growth12.82%
EPS Growth17.23%
CountryIN
Employees9,741
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)93.63
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
₹7,717.50Price Target Upside16.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)115.85
Revenue Forecast (FY)₹122.56B
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 mainly by selling (1) generic APIs and intermediates and (2) custom synthesis/contract development and manufacturing (often referred to as custom manufacturing or CRAMS/CDMO-type work) to pharmaceutical customers.
...
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 | 99.94B | 105.60B | 93.25B | 77.96B | 76.65B | 87.99B |
| Gross Profit | 54.50B | 45.62B | 54.55B | 45.27B | 44.87B | 57.07B |
| EBITDA | 36.78B | 38.74B | 33.20B | 25.44B | 27.12B | 39.95B |
| Net Income | 24.85B | 25.68B | 21.91B | 16.00B | 18.24B | 29.60B |
Balance Sheet | ||||||
| Total Assets | 181.51B | 200.33B | 169.47B | 154.70B | 144.39B | 133.75B |
| Cash, Cash Equivalents and Short-Term Investments | 32.61B | 34.14B | 37.15B | 37.01B | 41.36B | 27.42B |
| Total Debt | 900.00M | 70.00M | 40.00M | 30.00M | 44.90M | 36.90M |
| Total Liabilities | 27.38B | 32.72B | 19.78B | 18.99B | 16.72B | 16.47B |
| Stockholders Equity | 154.13B | 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
6603.05
Price Trends
6485.81
Positive
6336.70
Positive
6333.68
Positive
Market Momentum
15.40
Positive
50.07
Neutral
51.63
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 6603.05 is below the 20-day moving average (MA) of 6709.25, above the 50-day MA of 6485.81, and above the 200-day MA of 6333.68, indicating a neutral trend. The MACD of 15.40 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 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 (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹1.77T | 68.57 | ― | 0.46% | 12.82% | 17.23% | |
73 Outperform | ₹1.04T | 19.65 | ― | 0.57% | 23.12% | 62.27% | |
71 Outperform | ₹1.55T | 71.42 | ― | 0.84% | 21.40% | 13.19% | |
67 Neutral | ₹1.06T | 24.82 | ― | 0.63% | 3.19% | -24.30% | |
60 Neutral | ₹750.67B | 84.70 | ― | 0.15% | 22.67% | 147.77% | |
55 Neutral | ₹69.42B | -21.91 | ― | ― | 6.89% | -67.45% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IN:DIVISLAB
Divi's Laboratories Limited
6,633.05
-7.02
-0.11%
IN:DRREDDY
Dr. Reddy's Laboratories Ltd.
1,273.90
-78.97
-5.84%
IN:LAURUSLABS
Laurus Labs Ltd.
1,394.10
728.36
109.41%
IN:LUPIN
Lupin Limited
2,292.70
304.70
15.33%
IN:SUVEN
Suven Life Sciences Limited
268.60
32.95
13.98%
IN:TORNTPHARM
Torrent Pharmaceuticals Ltd
4,574.95
1,358.74
42.25%
Divi's Laboratories Limited Corporate Events
Divi’s Labs Posts FY26 Q4 Earnings Call Audio for Investors
May 23, 2026
Divi’s Laboratories Limited has announced that the audio recording of its earnings conference call for the quarter and year ended March 31, 2026, held on May 23, 2026, has been uploaded to the investor relations section of its website. The d...
Divi’s Laboratories Opens Special Window for Transfer and Demat of Physical Shares
Mar 14, 2026
Divi’s Laboratories has announced the publication of newspaper advertisements regarding the opening of a special window for the transfer and dematerialisation of physical shares, in line with a recent SEBI circular issued on January 30, 2026...
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.