ScoreWhy is Divis Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 17.24%
2
The company is Net-Debt Free
3
Poor long term growth as Net Sales has grown by an annual rate of 9.44% and Operating profit at 4.68% over the last 5 years
4
The company has declared Positive results for the last 6 consecutive quarters
- PAT(Latest six months) At Rs 1,327.31 cr has Grown at 20.77%
- ROCE(HY) Highest at 20.94%
- PBDIT(Q) Highest at Rs 890.00 cr.
5
With ROE of 16.1, it has a Very Expensive valuation with a 11.5 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.16%, its profits have risen by 22.6% ; the PEG ratio of the company is 3.1
6
High Institutional Holdings at 39.51%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating performance in long term as well as near term
- Along with generating 9.16% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Divi's Lab. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Divi's Lab. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Divi's Lab.
9.16%
0.39
23.36%
Sensex
-3.33%
-0.25
13.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.44%
EBIT Growth (5y)
4.68%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
0.67
Tax Ratio
24.63%
Dividend Payout Ratio
49.69%
Pledged Shares
0
Institutional Holding
39.51%
ROCE (avg)
27.54%
ROE (avg)
17.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
70
Industry P/E
34
Price to Book Value
11.50
EV to EBIT
59.15
EV to EBITDA
51.30
EV to Capital Employed
14.22
EV to Sales
16.88
PEG Ratio
3.09
Dividend Yield
0.45%
ROCE (Latest)
22.99%
ROE (Latest)
16.12%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
PAT(Latest six months)
At Rs 1,327.31 cr has Grown at 20.77%
ROCE(HY)
Highest at 20.94%
PBDIT(Q)
Highest at Rs 890.00 cr.
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 3,261.00 cr
Loading Valuation Snapshot...
Here's what is working for Divi's Lab.
Profit After Tax (PAT) - Latest six months
At Rs 1,327.31 cr has Grown at 20.77%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 890.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Here's what is not working for Divi's Lab.
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 3,261.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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