Divi's Laboratories (DIVISLAB.NS)
Healthcare · NSE · India
Fundamentals
Valuation and ratings
Divi's Laboratories trades at ₹7,316.00, which is 62% above the ₹2,805.32 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 83 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 70.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Divi's Laboratories
Divi's Laboratories Limited engages in the manufacture and sale of generic active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals in India, North America, Asia, Europe, and internationally. The company also undertakes custom synthesis contract manufacturing services of APIs and intermediates; and supplies a range of carotenoids, such as beta carotene, astaxanthin, lycopene, and canthaxanthin, as well as lutein and vitamins used in the food, beverage, dietary supplement, pet food, and feed industries. It also exports its products. The company was formerly known as Divi's Research Center and changed its name to Divi's Laboratories Limited in 1994. Divi's Laboratories Limited was incorporated in 1990 and is based in Hyderabad, India.
DIVISLAB.NS passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Divi's Laboratories (DIVISLAB.NS) undervalued?
Against our discounted cash flow estimate of ₹2,805.32, DIVISLAB.NS at ₹7,316.00 is 62% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DIVISLAB.NS's P/E ratio?
DIVISLAB.NS trades at 70.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.