Divi's Laboratories Limited
Divi's Laboratories Limited Fundamental Analysis
Divi's Laboratories Limited (DIVISLAB.NS) shows moderate financial fundamentals with a PE ratio of 68.43, profit margin of 24.04%, and ROE of 16.79%. The company generates $103.2B in annual revenue with strong year-over-year growth of 20.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DIVISLAB.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDIVISLAB.NS demonstrates superior asset utilization.
Valuation Score
ModerateDIVISLAB.NS shows balanced valuation metrics.
Growth Score
ExcellentDIVISLAB.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDIVISLAB.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateDIVISLAB.NS maintains healthy but balanced margins.
Key Financial Metrics
Is DIVISLAB.NS Expensive or Cheap?
P/E Ratio
DIVISLAB.NS trades at 68.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DIVISLAB.NS's PEG of -291.23 indicates potential undervaluation.
Price to Book
The market values Divi's Laboratories Limited at 11.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 46.03 times EBITDA. This signals the market has high growth expectations.
How Well Does DIVISLAB.NS Make Money?
Net Profit Margin
For every $100 in sales, Divi's Laboratories Limited keeps $24.04 as profit after all expenses.
Operating Margin
Core operations generate 28.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.79 in profit for every $100 of shareholder equity.
ROA
Divi's Laboratories Limited generates $13.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Divi's Laboratories Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Divi's Laboratories Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
DIVISLAB.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
68.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-291.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.006
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How DIVISLAB.NS Stacks Against Its Sector Peers
| Metric | DIVISLAB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 68.43 | 29.45 | Worse (Expensive) |
| ROE | 16.79% | 779.00% | Weak |
| Net Margin | 24.04% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 5.70 | 4.65 | Strong Liquidity |
| ROA | 13.66% | -19344.00% (disorted) | Strong |
DIVISLAB.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Divi's Laboratories Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
76.86%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
59.17%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
60.04%
Industry Style: Defensive, Growth, Innovation
High Growth