Divi's Lab.

Market Cap: Large Cap
Industry: Pharmaceuticals & Biotechnology
ISIN: INE361B01024
NSEID: DIVISLAB
BSEID: 532488
View on NSE | View on BSE

INR

6,007.00

-137.8 (-2.24%)

BSENSE

Mar 19

BSE+NSE Vol: 1.27 lacs

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lupin

Torrent Pharma

Sun Pharma.Inds.

Aurobindo Pharma

Biocon

Dr Reddy's Labs

Zydus Lifesci.

Alkem Lab

Divi's Lab.

Mankind Pharma

Cipla

Why is Divis Laboratories Ltd ?

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

With ROE of 16.1, it has a Very Expensive valuation with a 10.3 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 3.12%, its profits have risen by 22.6% ; the PEG ratio of the company is 2.8

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Divi's Lab. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Divi's Lab.

3.12%

0.12

25.63%

Sensex

-1.65%

-0.13

12.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

39.36%

ROCE (avg)

27.54%

ROE (avg)

17.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.35

EV to EBIT

53.11

EV to EBITDA

46.06

EV to Capital Employed

12.77

EV to Sales

15.15

PEG Ratio

2.78

Dividend Yield

0.50%

ROCE (Latest)

22.99%

ROE (Latest)

16.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

PAT(9M)

At Rs 1,872.31 cr has Grown at 22.45%

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 quarters

MOJO 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 periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents