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Divi's Laboratories Limited
(DIVISLAB)
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Rating:73Outperform
Price Target:
₹10,469.00
▲(20.61% 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
Conservative balance sheet
Negligible leverage and a steadily expanding equity base give Divi’s Laboratories substantial financial resilience across industry cycles. The conservative balance sheet can support investment, protect solvency during demand disruptions, and preserve flexibility for future growth initiatives.
Negative Factors
Margin normalization
The decline from exceptionally high historical margins shows that peak profitability has not been fully maintained. Continued normalization could limit earnings growth even if revenue expands, making future results more dependent on product mix, pricing, efficiency, and manufacturing execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Negligible leverage and a steadily expanding equity base give Divi’s Laboratories substantial financial resilience across industry cycles. The conservative balance sheet can support investment, protect solvency during demand disruptions, and preserve flexibility for future growth initiatives.
Read all positive factors
Divi's Laboratories Limited (DIVISLAB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.48T
Dividend Yield0.32%
Average Volume (3M)33.33K
Price to Earnings (P/E)84.7
Beta (1Y)0.81
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. Volume43,677
30 Day Avg. Volume33,328
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
₹9,100.00Price Target Upside4.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)125.03
Revenue Forecast (FY)₹126.04B
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 manufacturing and supplying (1) generic APIs and related intermediates, and (2) custom synthesis/contract manufacturing services for innovator and other pharmaceutical companies.
1) Generic APIs (and inte...
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
Neutral
8680.00
Price Trends
8990.40
Positive
7916.45
Positive
7092.45
Positive
Market Momentum
125.03
Positive
52.18
Neutral
57.08
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 8680 is below the 20-day moving average (MA) of 9403.28, below the 50-day MA of 8990.40, and above the 200-day MA of 7092.45, indicating a neutral trend. The MACD of 125.03 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.08 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹2.48T | 84.74 | ― | 0.32% | 16.35% | 26.84% | |
72 Outperform | ₹997.04B | 30.14 | ― | 0.67% | -0.92% | -41.74% | |
69 Neutral | ₹970.14B | 26.45 | ― | 0.24% | 9.09% | 9.61% | |
66 Neutral | ₹267.89B | 53.84 | ― | 0.16% | 78.33% | 182.61% | |
64 Neutral | ₹201.67B | 30.13 | ― | 0.22% | 24.83% | 36.88% | |
60 Neutral | ₹1.10T | 100.57 | ― | 0.10% | 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 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...
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.