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: 36/100
Lupin Ltd.
Pharma
Quality Score: 66/100
At a glance
| Metric | DIVISLAB | LUPIN |
|---|---|---|
| Quality Score | 36/100 | 66/100 |
| P/E (trailing) | 71.9 | 20.0 |
| Forward P/E | 57.4 | 22.8 |
| ROE | — | +26.9% |
| Profit margin | +24.0% | +19.1% |
| Debt-to-equity | 0.58 | 29.39 |
| Dividend yield | +0.45% | +0.50% |
| 1Y price return | +10.1% | +13.2% |
| From 52w high | -4.7% | -6.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | — | 2.06 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Divi's Laboratories (DIVISLAB) trades at ₹6,710.5, 10.07% above its level a year ago and above both its 50-DMA (₹6,247.7) and 200-DMA (₹6,296.84). The trailing PE of 71.88 is the highest among the 6 tracked pharma and healthcare peers, while 5-year earnings growth stands at -1% against revenue growth of 12.3%, pointing to a widening gap between top-line expansion and profit conversion. RSI at 73.49 places the stock in overbought territory, with immediate overhead resistance at ₹6,731.5 and ₹6,793.
Lupin (NSE: LUPIN) trades at ₹2,330.40, above both the 50-DMA (₹2,320.09) and 200-DMA (₹2,107.82), with RSI at 49.38 (neutral). The stock is 6.56% below its 52-week high and has gained 13.2% over the past year. Trailing PE is 20.03 against a sector that includes peers trading at 40–69x, while ROE of 26.91% ranks first among the 6-stock peer group on available data.
Pros
- ✓Profit margin of 24.04% is relatively robust for a pharma manufacturer and indicates that despite earnings growth headwinds, the business retains meaningful pricing power at the gross level.
- ✓FCF was positive in 4 of the available years, suggesting the business generates cash despite capex cycles common in API and specialty chemical manufacturing.
- ✓Debt-to-equity of 0.584 is low relative to the capital-intensive nature of pharma manufacturing, and the debt trend is flagged as flat rather than rising.
- ✓Forward PE of 57.35 versus trailing PE of 71.88 implies that analyst revenue and earnings estimates for the coming year are materially higher than the trailing period — a 20% compression in implied multiple if those estimates hold.
- ✓ROE of 26.91% ranks 1st among the 6-peer pharma group where comparable data is available, and sits materially above Dr. Reddys (16.1%), the only other peer with a disclosed figure.
- ✓Quality score of 70 ranks 1st in the peer group (peers range 30–54), indicating relatively stronger composite fundamental quality on the scoring model used.
- ✓Trailing PE of 20.03 is the second-lowest in the peer group, with only Dr. Reddys (18.96) trading at a lower multiple against peers at 23.9x to 69.4x.
- ✓Price is above both the 50-DMA and 200-DMA simultaneously, and the 52-week drawdown is a contained -6.56%, with nearest support identified at ₹2,260.30.
Cons
- ✗Five-year earnings growth of -1% while revenue grew 12.3% over the same period signals that cost escalation or margin compression has fully offset revenue expansion at the profit line.
- ✗ROE above 15% in only 1 of the available tracked years, combined with a consistency score of 22, indicates capital returns have been weak and inconsistent by historical standards.
- ✗Trailing PE of 71.88 is the highest among 6 tracked pharma and healthcare peers (next highest: MAXHEALTH at 69.5, APOLLOHOSP at 64.6), while the quality score of 34 ranks 4th of 6 — the stock commands a sector-leading valuation multiple without a sector-leading quality rank.
- ✗RSI of 73.49 in overbought territory with resistance clustered at ₹6,731.5–₹6,793 means the stock is within 0.3–1.2% of near-term technical resistance after a 3-month gain of 8.08%.
- ✗ROE persistence is weak: only 1 of the available historical years recorded ROE above 15%, making the current 26.91% figure difficult to confirm as durable rather than cyclical or base-effect driven (consistency score: 31/100).
- ✗Free cash flow was positive in only 3 of the available persistence years, and the debt trend is classified as rising — together these limit the financial flexibility implied by the headline profitability metrics.
- ✗USFDA issued 3 observations after inspecting the Somerset facility in April 2026; unresolved regulatory observations at a US manufacturing site represent a known overhang on the US generics revenue stream.
- ✗The 5-year earnings growth of 89% reflects recovery from a depressed base (profit margin now 19.07%); the forward PE of 22.78 exceeds the trailing PE of 20.03, meaning current pricing embeds continued earnings expansion that is not yet visible in historical persistence data.
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