NSE: DIVISLAB | BSE: 532488

Expensive Star

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5960.50 -187.50 (-3.05%)

60.06% Gain from 52W Low

367.2K NSE+BSE Volume

NSE 08 May, 2025 3:31 PM (IST)

158,232.6

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.

11 Aug 2019

5960.50

-3.05%

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.

Number of FII/FPI investors increased from 826 to 922 in Mar 2025 qtr.

Divi's Laboratories Ltd.

10 Aug 2019

5960.50

-3.05%

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. is trading above all available SMAs

Divi's Laboratories Ltd.

10 Jun 2019

5960.50

-3.05%

Divis Labs

Buy: Divi's Laboratories Ltd.

Target

Sharekhan

Divi's Laboratories Ltd. has gained 51.77% in the last 1 Year

Divi's Laboratories Ltd.

27 May 2019

5960.50

-3.05%

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 Ltd. has gained 51.77% in the last 1 Year

Divi's Laboratories Ltd.

27 May 2019

5960.50

-3.05%

Earnings growth on low base; capex benefits to reflect 2HFY21 onwards

Neutral: Divi's Laboratories Ltd.

Target

Motilal Oswal

concerns. However, EBITDA margin at 34.9% (our estimate: 39.6%) was marginally down by 60bp YoY compared to the fall in GM. This is due to lower other expenses (excluding one-offs), down 130bp YoY, and employee cost, down 60bp YoY (as % of sales). Other expenses had one-offs due to 1) Forex loss of INR74m and 2) Considerably higher amount of INR300m towards CSR. EBITDA at INR4.3b (our est. INR5.2b) grew 13% YoY. Adj. PAT at INR3b (our est. INR4b) grew at higher rate of 25% YoY due to lower tax rate for the quarter. For FY19, Sales/EBITDA/PAT at INR49b/INR19b/INR13b grew 26%/48%/55% on YoY basis....

Divi's Laboratories .. has an average target of 5832.12 from 9 brokers.

Divi's Laboratories Ltd.

27 May 2019

5960.50

-3.05%

Divis Lab: Margins impacted, Premium valuations

Sell: Divi's Laboratories Ltd.

Recommendation Target

Karvy

Margins impacted, Premium valuations: Divis Labs Net revenues increased by 15.5% YoY to Rs 12.6 bn, which is inlinewith our estimates for the quarter.

Divi's Laboratories Ltd. has gained 51.77% in the last 1 Year

Divi's Laboratories Ltd.

25 May 2019

5960.50

-3.05%

Divis Labs (REDUCE): FY20 to be a slow growth year downgrade to REDUCE

Sell: Divi's Laboratories Ltd.

BOB Capital Markets Ltd.

FY20 to be a slow growth year downgrade to REDUCE Q4FY19 was a big miss after a solid beat in the last two quarters. Revenue/EBITDA were 8%/23% below estimates. A large part of the miss was due to increase in RM prices, which would take 5-6 months to normalise, and a weak product mix. FY20 should be a year of slower growth (after a high base in FY19), with management guiding for 10% revenue growth and steady margins. This along with full valuations drives our rating cut to REDUCE (vs. ADD) with...

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

Divi's Laboratories Ltd.

04 Feb 2019

5960.50

-3.05%

Divi's Labs (3QFY19): Valuations unsupportive. Maintain SELL

Sell: Divi's Laboratories Ltd.

Target

HDFC Securities

Maintain SELL with a TP of Rs 1,395 (22x Dec-20E EPS). This is Divis Labs (DIVI) second consecutive quarter with Rs 12bn plus revenues, up from a quarterly run-rate of Rs 9-10bn earlier. Although the management maintains that this is driven by normalization of orders post import alert clearance, there is an uncanny coincidence that the business has gained traction in a quarter where Valsartan API prices soared, and the Rupee fell ~10%.

Number of FII/FPI investors increased from 826 to 922 in Mar 2025 qtr.

Divi's Laboratories Ltd.

04 Feb 2019

5960.50

-3.05%

Divi Lab: Revenues and margins outperform

Hold: Divi's Laboratories Ltd.

Recommendation Target

Karvy

Revenues and margins outperform: Divis Lab's Net revenues increased by 29.4% YoY to Rs 13.4 bn, which is higher than our estimates of Rs 10.4 bn for the quarter.

Divi's Laboratories Ltd. has gained 51.77% in the last 1 Year

Divi's Laboratories Ltd.

02 Feb 2019

5960.50

-3.05%

Strong revenue growth, better operating leverage drives earnings

Neutral: Divi's Laboratories Ltd.

Target

Motilal Oswal

DIVIs reported strong revenue growth of ~29% YoY to INR13.4b v/s our est. of INR12.2b, partly due to low base of last year. Gross margin expanded ~360bp YoY (+110bp QoQ) to 64.2%. EBITDA margin improved significantly by ~600bp YoY to 39% due to improvement in gross margin and better operating leverage. Employee cost 2 February 2019 increased at a lower rate of 19% YoY to INR1.4b, and other expenses remained stable at INR1.6b. Revenue growth coupled with margin expansion led to ~53% YoY growth in EBITDA to INR5.2b v/s our est.

Divi's Laboratories Ltd. has gained 51.77% in the last 1 Year

Is Divi's Laboratories Ltd. worth buying?

745 Votes:

Buy 78.12%

Sell 14.9%

Hold 6.98%

RESEARCH REPORTS

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