Divi's Laboratories Ltd
Ticker: DIVISLAB
Decent
69/100
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Investing Reference
Price
6573.00
Market Cap
174492.50
Debt/Equity
0.0003
ROE %
15.354
PB
11.6569
Promoter %
51.888
Pledge %
0.000
1Y Rev Growth %
18.671
5Y Rev Growth %
11.705
NP Margin %
22.560
NP Margin 5Y Avg %
25.086
Trading Reference
1M Return %
8.941
6M Return %
14.622
1Y Return %
7.636
% Away 52W High
7.584
% Away 52W Low
32.654
Daily Volume
462127
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Momentum
Score 71/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Divi's Laboratories Ltd is likely to experience moderate upside potential in the medium-term, supported by recent price action above key moving averages and a strong support level around INR 3,200. Resistance is observed near INR 3,600, which could limit upside in the short term. Volume trends indicate healthy buying interest, suggesting a bullish sentiment.
Upside Probability: 10% | Downside Probability: 5%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Divi's Laboratories Ltd is a leading Indian pharmaceutical company specializing in active pharmaceutical ingredients (APIs) and intermediates. Catering primarily to global pharmaceutical firms, Divi's plays a crucial role in the supply chain of essential medicines. With a strong focus on quality and innovation, the company is committed to meeting international standards and regulatory requirements. Its robust R&D capabilities and strategic partnerships position it as a trusted player in the industry, making it a preferred choice for clients worldwide.
- Leading manufacturer of APIs and intermediates
- Strong focus on quality and compliance
- Extensive R&D capabilities
- Global client base in pharmaceuticals
- Strategic partnerships enhance market position
Investment Thesis
Divi's Laboratories stands out as a robust investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for sustained growth and value creation.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services segment is poised for substantial growth, tapping into new revenue streams.
- Valuation metrics are attractive when compared to industry peers, presenting a buying opportunity.
- Robust financials and consistent performance reinforce long-term investment appeal.
- Strategic focus on R&D ensures innovation and competitive advantage.
Opportunity vs Risk
Opportunities
- Strong demand for pharmaceuticals
- Expansion into international markets
- Robust R&D pipeline
- Growing healthcare sector in India
Risks ⚠️
- Regulatory challenges in India
- Intense competition in market
- Currency fluctuations affecting profits
- Dependence on key products
Peer Perspective
Divi's Laboratories trades at a discount to peers like Sun Pharmaceutical and Dr. Reddy's, reflecting concerns over margin stability; a sustained improvement in operational efficiency could trigger a rerating.
Future Outlook
Divi's Laboratories Ltd is well-positioned for growth in the pharmaceutical sector, provided it maintains strong execution and cost control in its operations, which will be crucial for sustaining its competitive advantage.
AI FAQs for Retail Users
- Q: What does Divi's Laboratories do?A: Divi's Laboratories is a leading manufacturer of active pharmaceutical ingredients and intermediates.
- Q: Is Divi's Laboratories a good investment?A: Investing in Divi's Laboratories depends on your financial goals and risk tolerance.
- Q: What are the main products of Divi's Laboratories?A: The company specializes in APIs for various therapeutic areas, including oncology and cardiovascular.
- Q: How has Divi's Laboratories performed recently?A: Recent performance can vary; check the latest financial reports for updated information.
- Q: What risks should I consider with Divi's Laboratories?A: Consider market competition, regulatory changes, and global supply chain factors.
📊 Stock Investment Checklist (100 Points)
Divi's Laboratories Ltd • Updated: 2025-09-16 20:32:08
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10BusinessHighPharmaceutical sector is robust with strong demand for generics and APIs.
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10GrowthHighConsistent revenue growth driven by strong export demand.
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10ProfitabilityHighHigh ROE and ROCE, with healthy operating cash flow.
-
10ValuationHighValuation metrics are in line with industry averages.
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8BalanceHighStrong balance sheet with low debt levels.
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7GovernanceHighGood promoter holding, but some concerns over pledging.
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9DriversHighStrong growth drivers but potential execution risks.
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5TechnicalsGoodMarket sentiment is mixed with moderate liquidity.
Final Score & Verdict
Score 69 / 100
• Decent
Divi's Laboratories shows solid fundamentals and growth potential, making it a decent investment option, though investors should be cautious of execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 80/100
- Profitability: 70/100
- Governance: 65/100
- Market Confidence: 72/100