NSE: DIVISLAB | BSE: 532488

Expensive Performer

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6028.00 23.00 (0.38%)

27.31% Gain from 52W Low

224.2K NSE+BSE Volume

NSE 21 Aug, 2025 3:31 PM (IST)

160,024.5

Market Cap

Market Runner Up

0.7

Beta 1Year

Very Low volatility

Divi's Laboratories Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for DIVISLAB, BSE:532488 Divi's Laboratories Ltd.

Divi's Laboratories Ltd.

05 Nov 2019

6028.00

0.38%

Divi's Labs (ADD): Good Q2 beat; FY20 margin guidance cut is negative

Buy: Divi's Laboratories Ltd.

Recommendation Target

BOB Capital Markets Ltd.

Overall Revenue/EBITDA were 13% ahead of our estimates but largely in-line with consensus.

Divi's Laboratories .. has an average target of 6397.40 from 5 brokers.

Divi's Laboratories Ltd.

05 Nov 2019

6028.00

0.38%

Sales impressive, higher RM cost hurts margins

Neutral: Divi's Laboratories Ltd.

Target

Motilal Oswal

the product mix with a shift toward generics (59% v/s 57% YoY) and increased RM cost led to gross margin contraction of 390bp YoY to 59%. DIVI incurred non-recurring operational expense of INR200m related to power & fuel, consultancy and other regulatory costs. Adjusting for this, the EBITDA margin shrank 410bp YoY to 35.3% (our estimate: 34.2%). Accordingly, EBITDA declined 2% YoY to INR5.1b (our estimate: INR4.6b). DIVI had a forex gain of INR132m for the quarter. Adjusting for the same, PAT was down marginally by 1% YoY to INR3.6b (our estimate: INR3.4b). For 1HFY20, sales/...

Divi's Laboratories Ltd. has gained 27.63% in the last 1 Year

Divi's Laboratories Ltd.

04 Sep 2019

6028.00

0.38%

Initiating Coverage:Divis Lab.

Buy: Divi's Laboratories Ltd.

Target

Axis Direct

Uptrend in capital expenditure; Strong order visibility: Divi's will incur huge capital expenditure on new block at Unit 1 and Unit 2, with total capex of Rs1,700Cr; We initiate coverage on Divi's Laboratories with a BUY rating and target price of Rs1,900.

Prabhudas Lilladhar decreased Accumulate price target of Divi's Laboratories Ltd. to 6550.0 on 07 Aug, 2025.

Divi's Laboratories Ltd.

19 Aug 2019

6028.00

0.38%

Divis Labs

Buy: Divi's Laboratories Ltd.

Target

Sharekhan

Divi's Laboratories Ltd. has gained 27.63% in the last 1 Year

Divi's Laboratories Ltd.

12 Aug 2019

6028.00

0.38%

Adverse macro situation for raw materials impacts profitability

Neutral: Divi's Laboratories Ltd.

Motilal Oswal

Adverse macro situation for raw materials impacts profitability Motilal Oswal values your support in the Asiamoney Brokers Poll 2019 for...

Divi's Laboratories .. has an average target of 6397.40 from 5 brokers.

Divi's Laboratories Ltd.

12 Aug 2019

6028.00

0.38%

Divi s Lab: Lower margins, limited upside

Hold: Divi's Laboratories Ltd.

Recommendation Target

Karvy

Divis Labs Net revenues increased by 16.8 percent YoY to Rs 11.65 bn, which is in line with our estimates. The Operating margins were at 33 percent in Q1FY20 (much lower than our estimate of 36.0 percent) as against 35.4 percent in Q1FY19 on account of lower gross margin and higher expenditure.

Divi's Laboratories Ltd. is trading below all available SMAs

Divi's Laboratories Ltd.

11 Aug 2019

6028.00

0.38%

Divi's Labs (1QFY20): Overpriced. Maintain SELL

Sell: Divi's Laboratories Ltd.

Target

HDFC Securities

We had downgraded Divi's after it reported one of its strongest quarters in a decade in 2QFY19, as we had realized that the performance was driven by shortages in certain molecules (like Valsartan) and currency erosion of ~10% during that quarter. For the last 2 quarters, our thesis of margin contraction is playing out and we have further cut our FY20/21E estimates by 8-9% as we are yet to see the impact of ongoing capex. We believe it would be a challenging task for Divi's to cross 36-37% margin in FY20/21E. Still, with our generous estimates of 11/10/11% revenue/EBITDA/PAT CAGR over FY20-21E, Divi's is trading at 32.3/27.7x FY20/21E EPS, a ~50% premium to peer-avg and ~40% above its historical avg, much of which corresponds to periods of 40% plus return ratios. Even so, valuations have rarely crossed 25x one-year forward P/E. With return ratios falling below 20%, current valuations look unsustainable. We maintain SELL on DIVI, following a second consecutive quarter of dismal performance. With sustained erosion in profitability, we have cut our FY20/21E EPS estimates by 8-9%. At 22x FY21E EPS, our revised TP is at Rs 1,320.

Divi's Laboratories Ltd. has gained 27.63% in the last 1 Year

Divi's Laboratories Ltd.

10 Aug 2019

6028.00

0.38%

Q1FY20 operating performance was broadly in line (-4% vs. est., partly due to a forex los...

Buy: Divi's Laboratories Ltd.

Recommendation Target

Emkay

Q1FY20 operating performance was broadly in line (-4% vs. est., partly due to a forex loss of Rs61mn), and is more reflective of a business-as-normal trend. Margins recovered to 33.3%, up 60bps qoq; management expects FY20 margins to be ~36-37%. Custom synthesis business (CCS) business grew 11%yoy (vs. 8% yoy in Q4FY19) and the Generics business was up 22% yoy, while Carotenoids was up 15% yoy to Rs1.06bn. Year over year, INR/USD realizations were up 4%, implying CC growth of 11-12%. Management has guided for ~10% CC growth in FY20, while FY21/22E should benefit from increased capacities (capex of Rs17bn to be fully commissioned by FY20) and the...

Divi's Laboratories Ltd. has gained 27.63% in the last 1 Year

Divi's Laboratories Ltd.

10 Jun 2019

6028.00

0.38%

Divis Labs

Buy: Divi's Laboratories Ltd.

Target

Sharekhan

Prabhudas Lilladhar decreased Accumulate price target of Divi's Laboratories Ltd. to 6550.0 on 07 Aug, 2025.

Divi's Laboratories Ltd.

27 May 2019

6028.00

0.38%

Divi's Labs (4QFY19): As feared. Maintain SELL

Sell: Divi's Laboratories Ltd.

Target

HDFC Securities

While our thesis of margin contraction is playing out, we remain generous with a ~13% rev CAGR and margins largely flat at 38% in our estimates. These result in 16% earnings CAGR. ROEs are at ~20%. DIVI is trading at 31/27x FY20/21E EPS, a ~50% premium to peer-avg and ~40% above historical avg, much of which corresponds to periods of 40% plus return ratios. Even so, valuations have rarely crossed 25x one-year forward P/E. With return ratios in a significantly lower range, current valuations look unsustainable. Maintain SELL with a TP of Rs 1,445 (22x FY21E EPS). DIVI may be a good business, but the price is clearly wrong. We maintain SELL on DIVI, following a significant drop in profitability. Our thesis is playing out, even as our estimates remain unchanged. At 22x FY21E EPS, our TP stays at Rs 1,445/sh (more than 15% downside).

Divi's Laboratories .. has an average target of 6397.40 from 5 brokers.

Is Divi's Laboratories Ltd. worth buying?

750 Votes:

Buy 78.0%

Sell 15.07%

Hold 6.93%

RESEARCH REPORTS

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