Divis Laboratories
Divis Laboratories
Healthcare F&OKey Fundamentals
LargecapPharmaceuticalsHealthcareTapetide Score
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Key Insights
Strengths
2- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 39.0%
Weaknesses
2- Stock is trading at 14.8 times its book value
- The company has delivered a poor sales growth of 8.67% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
Divis Laboratories commands a market cap of ₹2,48,240 Cr and trades at a PE of 85.4x and 15.0x book value, reflecting premium valuations. The company is virtually debt-free with a 17% ROE in the last year, while TTM sales growth of 16% and profit growth of 29% signal an improving trajectory after a period of subdued top-line expansion averaging ~9% CAGR over five years.
- Near debt-free balance sheet provides financial resilience and flexibility for capacity expansion without leverage risk
- TTM profit growth of 29% significantly outpaces the 5-year compounded profit CAGR of 6%, indicating a strong earnings recovery cycle
- TTM sales growth of 16% marks a notable acceleration versus the 5-year compounded sales CAGR of 9%
- ROE of 17% last year is consistent with the 5-year average of 17% and 10-year average of 18%, reflecting durable return generation
- Healthy dividend payout ratio of 39.0% demonstrates shareholder-friendly capital allocation despite being a growth-oriented pharma company
- Stock CAGR of 57% over 1 year and 36% over 3 years reflects strong market re-rating and momentum
- 10-year compounded sales CAGR of 11% and profit CAGR of 9% indicate a long track record of consistent growth through cycles
- PE of 85.4x is significantly elevated relative to broader market and pharma sector averages, leaving limited margin of safety
- Price-to-book of 15.0x is extremely rich, implying the stock prices in many years of future growth already
- 5-year compounded sales growth of only 9% is modest for a stock commanding an 85x earnings multiple
- 5-year compounded profit CAGR of just 6% suggests earnings growth has historically lagged the valuation premium
- Dividend yield of 0.32% offers negligible income return, meaning investor returns depend almost entirely on capital appreciation
- 3-year ROE of 15% is lower than the 10-year average of 18%, suggesting some compression in capital efficiency
- The sharp 57% one-year stock CAGR raises the risk that near-term positive developments are already priced in at current levels
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1 FY27 earnings call uploaded Aug 1
Divis Labs uploaded the audio recording of its Q1 FY27 earnings conference call held on August 01, 2026, to its website for investor access.
- Two senior VPs retire Jul 31
L. Ramesh Babu and D. Madhu Babu retired as Senior Management Personnel effective July 31, 2026, disclosed under SEBI LODR Regulation 30.
TL;DR: A quiet news cycle for Divis Laboratories with only routine corporate disclosures — an earnings call upload and two senior VP retirements. No material positive or negative catalysts emerged. Investors should watch the Q1 FY27 earnings details for forward guidance on revenue and margin trajectory.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,778 | 1,909 | 1,855 | 2,303 | 2,118 | 2,338 | 2,319 | 2,585 | 2,410 | 2,715 | 2,604 | 2,831 | 3,080 |
| Expenses | 1,274 | 1,430 | 1,366 | 1,572 | 1,496 | 1,622 | 1,576 | 1,699 | 1,681 | 1,827 | 1,714 | 1,897 | 1,825 |
| Operating Profit | 504 | 479 | 489 | 731 | 622 | 716 | 743 | 886 | 729 | 888 | 890 | 934 | 1,255 |
| OPM % | 28% | 25% | 26% | 32% | 29% | 31% | 32% | 34% | 30% | 33% | 34% | 33% | 41% |
| Other Income | 81 | 86 | 95 | 79 | 79 | 106 | 82 | 86 | 119 | 145 | 14 | 155 | 64 |
| Interest | 0 | 1 | 0 | 2 | 0 | 1 | 0 | 1 | 3 | 8 | 6 | 6 | 6 |
| Depreciation | 93 | 95 | 95 | 95 | 97 | 99 | 99 | 107 | 112 | 113 | 118 | 120 | 133 |
| PBT | 492 | 469 | 489 | 713 | 604 | 722 | 726 | 864 | 733 | 912 | 780 | 963 | 1,180 |
| Tax % | 28% | 26% | 27% | 25% | 29% | 29% | 19% | 23% | 26% | 24% | 25% | 22% | 24% |
| Net Profit | 356 | 348 | 358 | 538 | 430 | 510 | 589 | 662 | 545 | 689 | 583 | 751 | 902 |
| EPS in Rs | 13.41 | 13.11 | 13.49 | 20.27 | 16.2 | 19.21 | 22.19 | 24.94 | 20.53 | 25.95 | 21.96 | 28.29 | 33.98 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,115 | 3,776 | 4,064 | 3,891 | 4,946 | 5,394 | 6,969 | 8,960 | 7,768 | 7,845 | 9,360 | 10,560 | 11,230 |
| Expenses | 1,942 | 2,354 | 2,615 | 2,622 | 3,072 | 3,568 | 4,102 | 5,075 | 5,397 | 5,635 | 6,387 | 7,118 | 7,263 |
| Operating Profit | 1,173 | 1,423 | 1,450 | 1,269 | 1,874 | 1,826 | 2,867 | 3,885 | 2,370 | 2,210 | 2,973 | 3,442 | 3,967 |
| OPM % | 38% | 38% | 36% | 33% | 38% | 34% | 41% | 43% | 31% | 28% | 32% | 33% | 35% |
| Other Income | 38 | 93 | 72 | 107 | 154 | 186 | 57 | 112 | 344 | 335 | 348 | 433 | 378 |
| Interest | 3 | 5 | 3 | 2 | 5 | 7 | 2 | 2 | 2 | 4 | 3 | 24 | 26 |
| Depreciation | 136 | 118 | 123 | 142 | 169 | 186 | 256 | 312 | 343 | 378 | 402 | 463 | 484 |
| PBT | 1,072 | 1,393 | 1,395 | 1,231 | 1,855 | 1,819 | 2,666 | 3,684 | 2,369 | 2,163 | 2,916 | 3,388 | 3,835 |
| Tax % | 21% | 19% | 24% | 29% | 27% | 24% | 26% | 20% | 23% | 26% | 25% | 24% | — |
| Net Profit | 852 | 1,126 | 1,060 | 877 | 1,353 | 1,377 | 1,984 | 2,960 | 1,823 | 1,600 | 2,191 | 2,568 | 2,925 |
| EPS in Rs | 32.07 | 42.41 | 39.95 | 33.04 | 50.96 | 51.85 | 74.75 | 112 | 68.69 | 60.27 | 82.53 | 96.73 | 110 |
| Div. Payout % | 31% | 24% | 25% | 30% | 31% | 31% | 27% | 27% | 44% | 50% | 36% | 31% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 27 | 53 | 53 | 53 | 53 | 53 | 53 | 53 | 53 | 53 | 53 | 53 |
| Reserves | 3,469 | 4,240 | 5,304 | 5,872 | 6,904 | 7,257 | 9,242 | 11,675 | 12,714 | 13,518 | 14,916 | 16,708 |
| Borrowings | 27 | 42 | 36 | 63 | 106 | 39 | 5 | 4 | 3 | 3 | 4 | 7 |
| Other Liabilities | 883 | 562 | 762 | 797 | 973 | 1,183 | 1,471 | 1,628 | 1,654 | 1,886 | 1,948 | 3,251 |
| Total Liabilities | 4,405 | 4,898 | 6,155 | 6,785 | 8,036 | 8,531 | 10,771 | 13,360 | 14,425 | 15,460 | 16,921 | 20,019 |
| Fixed Assets | 1,309 | 1,439 | 1,559 | 1,996 | 2,088 | 2,782 | 3,704 | 4,325 | 4,723 | 4,739 | 5,442 | 6,528 |
| CWIP | 218 | 264 | 444 | 120 | 492 | 920 | 711 | 470 | 212 | 778 | 1,022 | 2,113 |
| Investments | 733 | 803 | 1,631 | 1,889 | 1,946 | 971 | 0 | 72 | 77 | 82 | 65 | 69 |
| Other Assets | 2,145 | 2,392 | 2,521 | 2,780 | 3,511 | 3,858 | 6,356 | 8,493 | 9,413 | 9,861 | 10,392 | 11,309 |
| Total Assets | 4,405 | 4,898 | 6,155 | 6,785 | 8,036 | 8,531 | 10,771 | 13,360 | 14,425 | 15,460 | 16,921 | 20,019 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 826 | 1,038 | 1,150 | 776 | 954 | 1,216 | 1,947 | 1,912 | 2,460 | 1,261 | 1,653 | 2,738 |
| Investing | -521 | -406 | -1,140 | -478 | -685 | -83 | 75 | -2,195 | -2,708 | -269 | -804 | -2,219 |
| Financing | -303 | -631 | 2 | -314 | -246 | -1,091 | -35 | -532 | -797 | -799 | -799 | -804 |
| Net Cash Flow | 3 | 0 | 13 | -17 | 23 | 41 | 1,987 | -816 | -1,045 | 193 | 50 | -285 |
| Free Cash Flow | 519 | 642 | 774 | 502 | 221 | 33 | 1,037 | 1,199 | 1,987 | 258 | 215 | 221 |
| CFO/OP | 88 | 91 | 100 | 82 | 77 | 91 | 90 | 66 | 124 | 74 | 83 | 105 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 87 | 85 | 81 | 95 | 86 | 96 | 88 | 99 | 84 | 100 | 106 | 103 |
| Inventory Days | 350 | 293 | 307 | 314 | 347 | 316 | 329 | 341 | 352 | 364 | 311 | 346 |
| Days Payable | 68 | 56 | 104 | 96 | 96 | 100 | 117 | 96 | 89 | 94 | 88 | 106 |
| Cash Conversion Cycle | 368 | 322 | 284 | 313 | 336 | 312 | 300 | 344 | 347 | 370 | 330 | 343 |
| Working Capital Days | 140 | 158 | 147 | 176 | 169 | 180 | 152 | 177 | 188 | 206 | 192 | 195 |
| ROCE % | 33% | 36% | 29% | 22% | 29% | 25% | 32% | 35% | 19% | 16% | 20% | 22% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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68 extracted metrics + investor summaries across FY06–FY27.
Documents
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Company Information
Incorporated in 1990, Divis Laboratories Ltd manufactures and exports API's, Intermediates and Nutraceutical ingredients[1]
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