Divi's Laboratories Limited (DIVISLAB) AI Stock Analysis

• Market Cap: ₹1.65T
• Dividend Yield: 0.48%
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 71.4
• Beta (1Y): 0.86
• Revenue Growth: 17.92%
• EPS Growth: 37.75%
• Country: IN
• Employees: 9,741
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 20.49
• Shares Outstanding: 265,468,570
• 10 Day Avg. Volume: 12,426
• 30 Day Avg. Volume: 9,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹6,668.00
• Price Target Upside: 7.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: ₹6,651.00 ▲(7.30% Upside)

Divi's Laboratories Limited shows strong financial performance with minimal leverage and efficient operations. However, the stock's technical indicators suggest bearish momentum, and its high P/E ratio indicates overvaluation. The low dividend yield offers limited income potential, which affects the overall attractiveness of the stock.

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 synthesis of APIs and intermediates; and supplies a range of carotenoids, as well as markets vitamins to nutritional, pharma, food/beverage, and feed industries. The company was formerly known as Divi's Research Center and changed its name to Divi's Laboratories Limited in 1994. The company was incorporated in 1990 and is headquartered in Hyderabad, India.

How the Company Makes Money

Divi's Laboratories generates revenue primarily through the production and sale of its Active Pharmaceutical Ingredients (APIs) and intermediates. The company operates on a business-to-business (B2B) model, supplying its products to pharmaceutical companies worldwide. Key revenue streams include long-term contracts with major pharmaceutical firms, custom manufacturing services, and the sale of generic APIs. Additionally, Divi's Laboratories has established significant partnerships and collaborations with international pharmaceutical companies, enhancing its market reach and driving sales growth. The company also benefits from its extensive research and development capabilities, allowing it to innovate and expand its product portfolio, which further contributes to its earnings.

Divi's Laboratories Limited Financial Statement Overview

Summary

Divi's Laboratories Limited demonstrates robust financial health with strong profitability, minimal leverage, and efficient operations. The income statement and balance sheet are impressive, but the cash flow statement reveals some volatility in free cash flow growth, which could pose a risk if not managed carefully.

Income Statement

Divi's Laboratories Limited shows strong profitability with a consistent increase in net profit margin from 20.4% to 23.4% over the years. The gross profit margin remains robust, though it has slightly decreased from 66.3% to 34.1% in recent years. Revenue growth is positive at 3.1% for the latest period, indicating a stable upward trajectory. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains an excellent balance sheet with a very low debt-to-equity ratio, indicating minimal leverage risk. Return on equity is strong at 14.6%, showcasing effective use of shareholder funds. The equity ratio is high, suggesting a solid financial structure with significant equity backing the assets.

Cash Flow

Operating cash flow is strong, with a good coverage ratio of 1.34. Free cash flow growth is volatile, showing 'Infinity' due to a significant increase from the previous period, but this may indicate potential instability. The free cash flow to net income ratio is moderate, suggesting room for improvement in converting income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	93.60B	93.58B	78.45B	77.49B	87.99B	68.58B
Gross Profit	52.46B	31.91B	44.93B	44.87B	57.07B	45.34B
EBITDA	33.20B	33.21B	25.43B	27.14B	39.97B	29.24B
Net Income	21.91B	21.91B	16.00B	18.24B	29.60B	19.84B
Balance Sheet
Total Assets	169.32B	169.47B	154.70B	144.39B	133.75B	107.74B
Cash, Cash Equivalents and Short-Term Investments	37.31B	37.15B	37.01B	41.36B	27.42B	20.85B
Total Debt	40.00M	40.00M	30.00M	40.00M	36.90M	48.30M
Total Liabilities	19.63B	19.78B	18.99B	16.72B	16.47B	14.79B
Stockholders Equity	149.69B	149.69B	135.71B	127.67B	117.28B	92.95B
Cash Flow
Free Cash Flow	0.00	5.08B	2.58B	19.86B	11.99B	10.37B
Operating Cash Flow	0.00	19.46B	12.61B	24.59B	19.12B	19.47B
Investing Cash Flow	0.00	-10.99B	-2.69B	-27.07B	-21.95B	751.30M
Financing Cash Flow	0.00	-7.97B	-7.99B	-7.97B	-5.32B	-348.90M

Divi's Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6198.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 6198.65 is above the 20-day moving average (MA) of 6097.64, below the 50-day MA of 6296.29, and above the 200-day MA of 6100.40, indicating a neutral trend. The MACD of -43.02 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 69.35 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	76 Outperform	1.10T	19.42	16.23%	0.60%	15.86%	2.02%
TORNTPHARM	73 Outperform	1.23T	61.39	25.17%	0.88%	7.63%	15.39%
LUPIN	72 Outperform	939.18B	25.36	19.08%	0.58%	12.40%	63.16%
DIVISLAB	68 Neutral	₹1.65T	71.36		0.48%	17.92%	37.75%
LAURUSLABS	54 Neutral	502.98B	98.78	8.01%	0.13%	17.31%	242.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Divi's Laboratories Limited Corporate Events

Divi’s Laboratories Releases Q1 FY2026 Earnings Call Transcript

Divi’s Laboratories Limited has released the transcript of its earnings conference call for the quarter ended June 30, 2025. The call, held on August 6, 2025, provided insights into the company’s financial performance and strategic direction. This announcement is crucial for stakeholders as it offers transparency into the company’s operations and future outlook, potentially impacting investor confidence and market positioning.

Divi’s Laboratories Reports Stable Q1 Financial Results for 2025

Divi’s Laboratories Limited has announced its unaudited financial results for the quarter ended June 30, 2025, reporting a total income of 2,476 crore and a profit of 557 crore. The results, approved by the Board of Directors, indicate a stable financial performance with no discontinued operations, reflecting the company’s ongoing commitment to its core pharmaceutical manufacturing operations.

Divi’s Laboratories Announces Trading Window Closure

Divi’s Laboratories Limited announced the closure of its trading window from July 1, 2025, until 48 hours after the release of its unaudited financial results for the quarter ending June 30, 2025. This move is in compliance with the company’s Code of Conduct to regulate trading by insiders and is a routine procedure aimed at ensuring transparency and preventing insider trading.