ScoreWhy is Divis Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 17.24%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 9.86% and Operating profit at 5.38% over the last 5 years
4
The company has declared Positive results for the last 5 consecutive quarters
- ROCE(HY) Highest at 20.94%
- DPS(Y) Highest at Rs 30.00
- NET SALES(Q) Highest at Rs 2,715.00 cr
5
With ROE of 16.1, it has a Very Expensive valuation with a 10.9 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 6.01%, its profits have risen by 35.4% ; the PEG ratio of the company is 1.9
6
High Institutional Holdings at 39.36%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
With its market cap of Rs 1,70,795 cr, it is the second biggest company in the sector (behind Sun Pharma.Inds.)and constitutes 7.26% of the entire sector
- Its annual Sales of Rs 10,029.00 are 2.19% of the industry
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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Divi's Lab.
6.1%
0.23
26.15%
Sensex
9.0%
0.80
11.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.86%
EBIT Growth (5y)
5.38%
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
23.18%
Dividend Payout Ratio
49.69%
Pledged Shares
0
Institutional Holding
39.36%
ROCE (avg)
27.54%
ROE (avg)
17.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
68
Industry P/E
33
Price to Book Value
10.94
EV to EBIT
58.76
EV to EBITDA
50.96
EV to Capital Employed
13.51
EV to Sales
16.49
PEG Ratio
1.92
Dividend Yield
0.47%
ROCE (Latest)
22.99%
ROE (Latest)
16.12%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
ROCE(HY)
Highest at 20.94%
DPS(Y)
Highest at Rs 30.00
NET SALES(Q)
Highest at Rs 2,715.00 cr
PBDIT(Q)
Highest at Rs 888.00 cr.
PAT(Q)
Highest at Rs 689.00 cr.
EPS(Q)
Highest at Rs 26.00
-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.
Net Sales - Quarterly
Highest at Rs 2,715.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 888.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 689.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 26.00
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend per Share (DPS) - Annually
Highest at Rs 30.00
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
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
Non Operating Income - Quarterly
Highest at Rs 145.00 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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