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Divi's Laboratories Limited
(DIVISLAB)
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Rating:75Outperform
Price Target:
₹9,417.00
▲(29.95% 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
An exceptionally low-debt, equity-growing balance sheet gives Divi's durable financial flexibility. Negligible leverage and a rising equity base support capex, regulatory compliance, and contract scaling, lowering default risk and enabling opportunistic investments through cycles.
Negative Factors
Uneven free cash flow conversion
Free cash flow has been volatile, swinging sharply due to higher reinvestment and working-capital moves. That variability can limit predictable shareholder returns, constrain self-funded expansion or acquisitions, and makes capital allocation planning less reliable over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
An exceptionally low-debt, equity-growing balance sheet gives Divi's durable financial flexibility. Negligible leverage and a rising equity base support capex, regulatory compliance, and contract scaling, lowering default risk and enabling opportunistic investments through cycles.
Read all positive factors
Divi's Laboratories Limited (DIVISLAB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.14T
Dividend Yield0.37%
Average Volume (3M)6.36K
Price to Earnings (P/E)83.2
Beta (1Y)0.81
Revenue Growth16.35%
EPS Growth26.84%
CountryIN
Employees9,741
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)96.77
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 Upside6.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)118.67
Revenue Forecast (FY)₹123.58B
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.60B | 93.25B | 77.96B | 76.65B | 87.99B |
| Gross Profit | 45.62B | 54.55B | 45.27B | 44.87B | 57.07B |
| EBITDA | 38.74B | 33.20B | 25.44B | 27.12B | 39.95B |
| Net Income | 25.68B | 21.91B | 16.00B | 18.24B | 29.60B |
Balance Sheet | |||||
| Total Assets | 200.33B | 169.47B | 154.70B | 144.39B | 133.75B |
| Cash, Cash Equivalents and Short-Term Investments | 34.14B | 37.15B | 37.01B | 41.36B | 27.42B |
| Total Debt | 70.00M | 40.00M | 30.00M | 44.90M | 36.90M |
| Total Liabilities | 32.72B | 19.78B | 18.99B | 16.72B | 16.47B |
| Stockholders Equity | 167.61B | 149.69B | 135.71B | 127.67B | 117.28B |
Cash Flow | |||||
| Free Cash Flow | 4.97B | 5.08B | 2.58B | 19.86B | 11.99B |
| Operating Cash Flow | 30.17B | 19.46B | 12.61B | 24.59B | 19.12B |
| Investing Cash Flow | -25.03B | -10.99B | -2.69B | -27.07B | -21.95B |
| Financing Cash Flow | -7.99B | -7.97B | -7.99B | -7.97B | -5.32B |
Divi's Laboratories Limited Technical Analysis
Positive
7246.65
Price Trends
6945.55
Positive
6630.55
Positive
6500.58
Positive
Market Momentum
357.39
Negative
87.04
Negative
91.39
Negative
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 7392.09, above the 50-day MA of 6945.55, and above the 200-day MA of 6500.58, indicating a bullish trend. The MACD of 357.39 indicates Negative momentum. The RSI at 87.04 is Negative, neither overbought nor oversold. The STOCH value of 91.39 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹2.14T | 83.25 | ― | 0.41% | 16.35% | 26.84% | |
69 Neutral | ₹244.64B | 67.12 | ― | 0.18% | 36.98% | 39.94% | |
68 Neutral | ₹908.72B | 26.19 | ― | 0.26% | 6.08% | 0.77% | |
66 Neutral | ₹204.20B | 30.47 | ― | 0.18% | 24.83% | 36.88% | |
61 Neutral | ₹957.40B | 28.90 | ― | 0.69% | -0.92% | -41.73% | |
60 Neutral | ₹981.15B | 89.69 | ― | 0.12% | 22.62% | 114.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Divi's Laboratories Limited Corporate Events
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...
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...
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.