DIVISLAB vs LUPIN
Side-by-side comparison of Divi's Laboratories Ltd. and Lupin Ltd.. Descriptive only — not investment advice.
Divi's Laboratories Ltd.
Pharma
Quality Score: 57/100
Lupin Ltd.
Pharma
Quality Score: 64/100
At a glance
| Metric | DIVISLAB | LUPIN |
|---|---|---|
| Quality Score | 57/100 | 64/100 |
| P/E (trailing) | 67.8 | 19.5 |
| Forward P/E | 46.4 | 22.4 |
| ROE | +16.2% | +26.9% |
| Profit margin | +24.3% | +19.1% |
| Debt-to-equity | 0.04 | 29.39 |
| Dividend yield | +0.45% | +0.53% |
| 1Y price return | -1.7% | +11.4% |
| From 52w high | -6.9% | -9.4% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.57 | 2.53 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Divi's Laboratories (DIVISLAB) is a pharma API and custom synthesis player trading at ₹6,553.5, with a trailing PE of 67.79 — the highest in its 6-peer sector group — against a 5-year earnings CAGR of 13.6% and profit margin of 24.32%. The stock is above both the 50-day moving average (₹6,398) and 200-day moving average (₹6,313), with RSI at 44.24, and sits 6.9% below its 52-week high after a flat 1-year price return of -1.71%.
Lupin (NSE: LUPIN) trades at ₹2,258.20, up 11.4% over 12 months, sitting above its 200-DMA (₹2,112.44) but below its 50-DMA (₹2,315.67). Trailing PE is 19.53 against a forward PE of 22.35; ROE of 26.91% is the highest among the available pharma peer set, though historical ROE persistence is limited to 1 year above 15% across the measurement window. A USFDA inspection of the Somerset facility resulted in 3 observations in April 2026, an open regulatory item at the time of this analysis.
Pros
- ✓5-year earnings CAGR of 13.6% and revenue CAGR of 9.5% demonstrate consistent compounding over a multi-year window.
- ✓Profit margin of 24.32% is among the highest in the pharma peer set, indicating structural cost discipline in manufacturing.
- ✓D/E of 0.042 reflects an effectively debt-free balance sheet, and FCF has been positive in 4 of the available tracked years.
- ✓Quality score of 51/100 ranks 2nd among 6 sector peers, and ROE of 16.19% ranks 2nd in the group (peers range: 11.74%–21.5%).
- ✓ROE of 26.91% ranks 1st among available peers (Cipla: 11.74%, Dr. Reddys: 11.84%), with a trailing PE of 19.53 — the lowest in the peer group — indicating relatively less valuation premium paid per unit of return.
- ✓Revenue grew 31.9% over 5 years with a quality score of 72, ranking 1st of 6 in the sector peer set on that composite measure.
- ✓News flow is net positive (5 positive, 1 negative across 8 articles): Q4 profit rose approximately 90% YoY, and a highest-ever dividend was declared in May 2026.
- ✓A new US product launch (Dapagliflozin + Metformin ER tablets) and a biosimilar partnership with Mylan for Enbrel etanercept were announced in April–May 2026, indicating active pipeline commercialisation in the US market.
Cons
- ✗Trailing PE of 67.79 ranks 6th of 6 in the peer group — a 76% premium over the next-cheapest peer (Dr. Reddy at 25.6) — concentrating valuation risk if earnings growth moderates.
- ✗ROE exceeded 15% in only 1 of the tracked historical years (roeYearsAbove15 = 1), indicating the current ROE reading has limited historical precedent as a sustained level.
- ✗Debt trend is classified as rising; while D/E remains at 0.042, continued capital deployment warrants scrutiny given the stretched earnings multiple.
- ✗1-year price return of -1.71% lags the broader pharma peers for which 1-year data is available, suggesting near-term market sentiment has not aligned with the longer-run earnings trajectory.
- ✗ROE persistence is limited: only 1 of the available historical years records ROE above 15%, and the consistency score is 31/100 — the current 26.91% ROE may not reflect a durable multi-year trend.
- ✗Debt trend is rising and free cash flow was positive in only 3 of the available persistence years, which constrains the margin of safety against revenue or margin pressure.
- ✗USFDA issued 3 observations following an April 2026 inspection of the Somerset facility; the outcome is unresolved and carries potential for product approval delays or import restrictions.
- ✗Forward PE of 22.35 exceeds trailing PE of 19.53, embedding an earnings growth expectation at a time when the 5-year earnings growth of 89% reflects recovery from a low base rather than a steady compounding trajectory.
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