Divi's Laboratories Limited Fundamental Analysis (NSE: DIVISLAB.NS)
Divi's Laboratories Limited Fundamental Analysis (NSE: DIVISLAB.NS)
Divi's Laboratories Limited (NSE: DIVISLAB.NS) shows moderate financial fundamentals with a PE ratio of 78.00, profit margin of 26.05%, and ROE of 18.18%. The company generates $112.3B in annual revenue with strong year-over-year growth of 19.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.5/100 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
WeakDIVISLAB.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakDIVISLAB.NS trades at a premium to fair value.
Growth Score
ExcellentDIVISLAB.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateDIVISLAB.NS shows balanced financial health with some risks.
Profitability Score
ExcellentDIVISLAB.NS achieves industry-leading margins.
Key Financial Metrics
Is DIVISLAB.NS Expensive or Cheap?
P/E Ratio
DIVISLAB.NS trades at 78.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DIVISLAB.NS's PEG of 2.90 indicates potential overvaluation.
Price to Book
The market values Divi's Laboratories Limited at 13.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 53.31 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 $26.05 as profit after all expenses.
Operating Margin
Core operations generate 31.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.18 in profit for every $100 of shareholder equity.
ROA
Divi's Laboratories Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Divi's Laboratories Limited produces operating cash flow of $16.45B, showing steady but balanced cash generation.
Free Cash Flow
Divi's Laboratories Limited generates weak or negative free cash flow of $1.01B, restricting financial flexibility.
FCF Per Share
Each share generates $3.80 in free cash annually.
FCF Yield
DIVISLAB.NS converts 0.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
78.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
20.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How DIVISLAB.NS Stacks Against Its Sector Peers
| Metric | DIVISLAB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 78.00 | 30.97 | Worse (Expensive) |
| ROE | 18.18% | 515.00% | Weak |
| Net Margin | 26.05% | 30197.00% | Weak |
| Debt/Equity | 0.00 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 5.71 | Weak Liquidity |
| ROA | 0.00% | -16.00% (disorted) | Weak |
DIVISLAB.NS outperforms its industry in 1 out of 6 key metrics, 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
76.24%
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