Divi's Laboratories Limited (DIVISLAB) AI Stock Analysis

• Market Cap: ₹1.62T
• Dividend Yield: 0.46%
• Average Volume (3M): 6.36K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.84
• Revenue Growth: 16.43%
• EPS Growth: 35.35%
• Country: IN
• Employees: 9,741
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 21.98
• Shares Outstanding: 265,468,570
• 10 Day Avg. Volume: 6,055
• 30 Day Avg. Volume: 6,356
• PEG Ratio: 1.82
• Price to Book (P/B): 9.84
• Price to Sales (P/S): 15.80
• P/FCF Ratio: 290.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 117.82
• Revenue Forecast (FY): ₹123.31B

• Rating: 74 Outperform
• Price Target: ₹6,676.00 ▲(1.10% Upside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

Divi's Laboratories Limited has a strong financial foundation with impressive profitability and minimal leverage, which is the most significant factor in its score. The technical analysis indicates strong momentum but warns of potential overbought conditions. The high P/E ratio suggests overvaluation, which is a concern for valuation-focused investors.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio provide durable financial flexibility for Divi's. Strong ROE (14.6%) indicates effective capital deployment, enabling sustained reinvestment in capacity, process improvements or selective M&A without stressing solvency over the next several quarters.

Negative Factors

Volatile free cash flow

Extreme FCF volatility, flagged as an 'Infinity' increase, suggests inconsistent cash conversion from earnings or timing anomalies. This undermines predictability for capex, dividends or buybacks and raises execution risk when scaling plants or funding long CRAMS projects over the coming quarters.

Divi's Laboratories Limited Business Overview & Revenue Model

Company Description

Divi's Laboratories Limited manufactures and sells generic active pharmaceutical ingredients (APIs) and intermediates, and nutraceutical ingredients in India, the United States, Asia, Europe, and internationally. It also undertakes custom synthesi...

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Divi's Laboratories Limited manufactures and sells generic active pharmaceutical ingredients (APIs) and intermediates, and nutraceutical ingredients in India, the United States, Asia, Europe, and internationally. It also undertakes custom synthesi...

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. ...

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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

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	99.94B	93.25B	77.96B	76.65B	87.99B	68.58B
Gross Profit	54.50B	54.55B	45.27B	44.87B	57.07B	44.26B
EBITDA	36.78B	33.20B	25.44B	27.12B	39.95B	29.22B
Net Income	24.85B	21.91B	16.00B	18.24B	29.60B	19.84B
Balance Sheet
Total Assets	181.51B	169.47B	154.70B	144.39B	133.75B	107.74B
Cash, Cash Equivalents and Short-Term Investments	32.61B	37.15B	37.01B	41.36B	27.42B	20.85B
Total Debt	900.00M	40.00M	30.00M	44.90M	36.90M	48.30M
Total Liabilities	27.38B	19.78B	18.99B	16.72B	16.47B	14.79B
Stockholders Equity	154.13B	149.69B	135.71B	127.67B	117.28B	92.95B
Cash Flow
Free Cash Flow	1.01B	5.08B	2.58B	19.86B	11.99B	10.37B
Operating Cash Flow	16.45B	19.46B	12.61B	24.59B	19.12B	19.47B
Investing Cash Flow	-12.61B	-10.99B	-2.69B	-27.07B	-21.95B	751.30M
Financing Cash Flow	-7.20B	-7.97B	-7.99B	-7.97B	-5.32B	-348.90M

Divi's Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6603.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIVISLAB, the sentiment is Neutral. The current price of 6603.05 is above the 20-day moving average (MA) of 6022.49, above the 50-day MA of 6149.04, and above the 200-day MA of 6326.50, indicating a neutral trend. The MACD of -75.83 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 69.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DIVISLAB.

Divi's Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIVISLAB	74 Outperform	₹1.62T	72.71	―	0.46%	16.43%	35.35%
LUPIN	72 Outperform	₹1.07T	20.49	―	0.57%	15.49%	64.37%
DRREDDY	70 Outperform	₹1.03T	21.88	―	0.63%	14.10%	9.72%
TORNTPHARM	66 Neutral	₹1.41T	51.30	―	0.84%	9.11%	18.76%
LAURUSLABS	66 Neutral	₹592.71B	59.42	―	0.15%	25.83%	421.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SUVEN	47 Neutral	₹45.15B	-9.14	―	―	―	―

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