Divi’s Laboratories Ltd’s fundamental analysis shows a market capitalization of ₹1,27,756.75 crore, a PE ratio of 76.59, and a return on equity (ROE) of 12.2%. The company demonstrates strong financial performance and moderate leverage, reflecting its robust market position.
Content:
- Divi’s Laboratories Ltd Overview
- Divi’s Laboratories Financial Results
- Divi’s Laboratories Financial Analysis
- Divi’s Laboratories Company Metrics
- Divi’s Laboratories Stock Performance
- Divi’s Laboratories Peer Comparison
- Divi’s Laboratories Shareholding Pattern
- Divi’s Laboratories History
- How To Invest In Divi’s Laboratories Ltd Share?
- Divi’s Laboratories Limited Fundamental Analysis – FAQs
Divi’s Laboratories Ltd Overview
Divi’s Laboratories Ltd is a leading Indian pharmaceutical company specializing in the development and manufacturing of active pharmaceutical ingredients (APIs) and intermediates. It is renowned for its significant contributions to the global pharmaceutical industry and its commitment to quality and innovation.
The company has a market capitalization of ₹1,27,756.75 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 34.4% below its 52-week high of ₹5,025 and 18.3% above its 52-week low of ₹3,295. The all-time high of the stock is ₹5,425, and the all-time low is ₹45.00.
Divi’s Laboratories Financial Results
Dabur India’s financial performance shows a decline, with revenue decreasing from ₹8,960 crore in FY 22 to ₹7,845 crore in FY 24. Profitability also dropped, with EPS falling from ₹111.52 to ₹60.27 and EBITDA from ₹3,996 crore to ₹2,544 crore.
- Revenue Trend: Sales decreased from ₹8,960 crore in FY 22 to ₹7,768 crore in FY 23, and further to ₹7,845 crore in FY 24, indicating a need for revenue stabilization.
- Equity and Liabilities: Dabur India’s equity and liabilities structure reflects financial stability and strategic management. The company maintains a balance between equity financing and low debt levels, ensuring sustainability and flexibility in capital allocation for growth initiatives.
- Profitability: Operating Profit Margin (OPM) decreased from 43% in FY 22 to 30% in FY 23, and further to 28% in FY 24, indicating a decline in operational efficiency.
- Earnings per Share (EPS): EPS decreased from ₹111.52 in FY 22 to ₹68.69 in FY 23, and further to ₹60.27 in FY 24, indicating a decline in profit growth per share.
- Return on Net Worth (RoNW): RoNW has shown a decreasing trend over the last three years, dropping from 25.21% in FY 22 to 14.23% in FY 23, and further to 11.68% in FY 24, indicating a decline in equity utilization efficiency and profitability.
- Financial Position: The company’s financial position weakened with EBITDA decreasing from ₹3,996 crore in FY 22 to ₹2,712 crore in FY 23, and further to ₹2,544 crore in FY 24, showcasing a need for improved financial health and management.
Divi’s Laboratories Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 7,845 | 7,768 | 8,960 |
| Expenses | 5,640 | 5,400 | 5,078 |
| Operating Profit | 2,205 | 2,368 | 3,882 |
| OPM % | 28 | 30 | 43 |
| Other Income | 339 | 344.66 | 113.87 |
| EBITDA | 2,544 | 2,712 | 3,996 |
| Interest | 3 | 0.67 | 0.8 |
| Depreciation | 378 | 343.18 | 311.51 |
| Profit Before Tax | 2,163 | 2,369 | 3,684 |
| Tax % | 26.03 | 23.02 | 19.63 |
| Net Profit | 1,600 | 1,823 | 2,960 |
All values in ₹ Crores.
Divi’s Laboratories Company Metrics
Divi’s Laboratories Ltd has a market capitalization of ₹1,27,756.75 crore. EBITDA decreased from ₹3,996 crore in FY 22 to ₹2,544 crore in FY 24, indicating a decline in operational performance and profitability over these years.
Market Capitalization: Divi’s Laboratories Ltd’s market capitalization represents the total market value of its outstanding shares, amounting to ₹1,27,756.75 crore.
Book Value: Divi’s Laboratories Ltd has a book value of ₹511 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of Divi’s Laboratories Ltd’s shares is ₹2.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: Divi’s Laboratories Ltd has an asset turnover ratio of 0.53, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: Divi’s Laboratories Ltd has a minimal debt of ₹3 crore, reflecting its low financial leverage and obligations.
EBITDA: Divi’s Laboratories Ltd’s EBITDA decreased from ₹3,996 crore in FY 22 to ₹2,712 crore in FY 23, and further to ₹2,544 crore in FY 24, indicating a decline in operational performance and profitability over these years.
Dividend Yield: Divi’s Laboratories Ltd has a dividend yield of 0.61%, reflecting the annual dividend income relative to its current share price.
Divi’s Laboratories Stock Performance
Divi’s Laboratories Ltd delivered notable returns on investment with 31.3% over 1 year and 25.8% over 5 years, despite a slight decline of -0.81% over 3 years. This highlights strong long-term performance and overall profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 31.3 |
| 3 Years | -0.81 |
| 5 Years | 25.8 |
Example: If an investor had invested ₹1,000 in Divi’s Laboratories Ltd’s stock:
1 year ago, their investment would be worth ₹1,313.
3 years ago, their investment would have slightly decreased to ₹992.
5 years ago, their investment would have increased to approximately ₹1,258.
This highlights strong long-term performance and overall profitability for investors.
Divi’s Laboratories Peer Comparison
Divi’s Laboratories leads with a market cap of ₹1,27,746.14 crore and a 1-year return of 31.28%. Neuland Labs follows with a market cap of ₹14,783.12 crore and an impressive 1-year return of 180.15%. Jubilant Pharmova, Ami Organics, Aarti Drugs, Hikal, and Gujarat Themis Bio also show diverse performance metrics.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Divi’s Lab. | 4812.1 | 127746.14 | 76.3 | 12.17 | 63.06 | 31.28 | 16.48 | 0.61 |
| Neuland Labs. | 11522.4 | 14783.12 | 46.13 | 26.39 | 261.94 | 180.15 | 33.26 | 0.12 |
| Jubilant Pharmo | 850.05 | 13541.31 | 57.83 | 0.76 | 34.7 | 92.64 | 6.74 | 0.58 |
| Ami Organics | 1291 | 5280.93 | 88.71 | 9.39 | 11.6 | 3.52 | 16.02 | 0.23 |
| Aarti Drugs | 510.35 | 4691.91 | 36.3 | 12.39 | 14.06 | -10.34 | 13.49 | 0.19 |
| Hikal | 322.65 | 3978.29 | 58.78 | 6 | 5.49 | 10.85 | 7.82 | 0.19 |
| Guj. Themis Bio. | 356.4 | 3883.54 | 71.03 | 33.76 | 5.02 | 243.12 | 44.99 | 0.18 |
Divi’s Laboratories Shareholding Pattern
Divi’s Laboratories Ltd’s shareholding pattern from FY 2023 to FY 2024 shows promoters’ holdings slightly decreasing from 51.92%. FIIs hold 14.68%, DIIs increased to 22.2%, while retail and others’ holdings are at 11.19%, indicating a balanced investor composition.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 51.92 | 51.94 | 51.94 |
| FII | 14.68 | 14.67 | 18.45 |
| DII | 22.2 | 21.07 | 18.32 |
| Retail & others | 11.19 | 12.31 | 11.28 |
All values in %
Divi’s Laboratories History
Divi’s Laboratories, founded in 1990 by Dr. Murali K. Divi, began as a small research and development firm focusing on the pharmaceutical industry. Over the years, the company expanded its capabilities to include large-scale manufacturing of active pharmaceutical ingredients (APIs) and intermediates.
In the early 2000s, Divi’s Laboratories made significant strides by establishing two state-of-the-art manufacturing facilities in Hyderabad and Visakhapatnam. These facilities are equipped with advanced technologies and comply with international regulatory standards, allowing the company to cater to global pharmaceutical markets.
Throughout its journey, Divi’s Laboratories has consistently emphasized innovation and quality. The company invests heavily in research and development to create high-value products and processes. This commitment to excellence has earned it numerous accolades and a strong reputation in the industry.
By the mid-2010s, Divi’s Laboratories had established itself as a global leader in the pharmaceutical sector, exporting its products to over 95 countries. The company’s diverse product portfolio and strategic partnerships with leading pharmaceutical companies have contributed to its sustained growth and market presence.
Today, Divi’s Laboratories continues to build on its legacy of innovation and quality. With a focus on sustainable growth, the company is expanding its manufacturing capacities and exploring new markets. Divi’s Laboratories remains committed to delivering high-quality pharmaceutical solutions to meet the evolving needs of the global healthcare industry.
How To Invest In Divi’s Laboratories Ltd Share?
Investing in Divi’s Laboratories Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Divi’s Laboratories Ltd shares and place your buy order.
Divi’s Laboratories Limited Fundamental Analysis – FAQs
Divi’s Laboratories Ltd has a market capitalization of ₹1,27,756.75 crore, a PE ratio of 76.59, and an ROE of 12.2%, indicating strong financial performance and moderate leverage, reflecting its robust market position.
The market capitalization of Divi’s Laboratories Ltd is ₹1,27,756.75 crore, indicating the total market value of its outstanding shares and reflecting its substantial presence in the pharmaceutical industry.
Divi’s Laboratories Limited is an Indian pharmaceutical company specializing in the manufacture of active pharmaceutical ingredients (APIs) and intermediates. It is known for its high-quality standards and extensive global reach.
Divi’s Laboratories was founded by Dr. Murali K. Divi, who remains a significant figure in the company’s operations and ownership, guiding its strategic direction and growth.
The main shareholders of Divi’s Laboratories include promoters with 51.92%, Foreign Institutional Investors (FIIs) with 14.68%, Domestic Institutional Investors (DIIs) with 22.2%, and retail and other investors holding 11.19%.
Divi’s Laboratories operates in the pharmaceutical industry, focusing on the production of active pharmaceutical ingredients (APIs) and intermediates for both generic and branded drug manufacturers globally.
To invest in Divi’s Laboratories Ltd shares, open a brokerage account, complete KYC, deposit funds, and purchase shares through the stock exchange using your broker’s platform or app.
Determining if Divi’s Laboratories is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. As of now, its PE ratio of 76.59 suggests it might be overvalued based on market expectations and the company’s profitability.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
