Divi's Laboratories Ltd.
NSE: DIVISLABDivi's Laboratories Ltd.: A 30-second snapshot
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%.
P/E
67.8
Forward P/E
46.4
ROE
+16.2%
Debt / Equity
0.04
Profit Margin
+24.3%
Div. Yield
+0.5%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
57/100
News
7 headlines · 4 positive · 0 negative
Divis Lab Q4 PAT climbs 13% YoY; recommends final dividend of Rs 30/share - Business Standard
Business Standard
DIVISLAB: FY 2025-26 saw record income, higher PAT, strong forex gains, and a ₹30 dividend proposed - TradingView
TradingView
Accumulate Divi's Laboratories; target of Rs 6900: Prabhudas Lilladher - TradingView
TradingView
DIVISLAB: Revenue and profit rose YoY, with stable operations and strong pipeline despite supply chain challenges - TradingView
TradingView
Divi's Laboratories Ltd stock (INE361B01024): investors look ahead to May 23 earnings update - AD HOC NEWS
AD HOC NEWS
Recent context
- ·Q4 FY2026 results (May 23, 2026) showed PAT up 13% YoY; management proposed a final dividend of ₹30 per share, and the company reported record income for FY2025-26 with strong forex gains.
- ·Prabhudas Lilladher initiated a specific stated rating with a price reference of ₹6,900 in a note dated May 25, 2026, reflecting one named broker's view of the recent quarterly result.
- ·Supply chain challenges were flagged in the Q4 commentary alongside a strong pipeline, a combination that frames near-term execution as a key variable for the following quarters.
Strengths
- +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%).
Weaknesses
- −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.
Open questions
- ?Does the 13.6% 5-year earnings CAGR reflect a structural competitive advantage in CDMO/API, or is it driven by a narrow product or customer concentration that could reverse?
- ?Given that ROE has exceeded 15% in only 1 of the tracked years, what factors would need to persist for the current 16.19% ROE to become a multi-year norm rather than a single-year observation?
- ?At a trailing PE of 67.79 — the highest among the 6-peer group — what earnings growth rate is the market pricing in, and how does the forward PE of 46.35 reflect the consensus expectation?
- ?How should an observer interpret the divergence between a 13.6% 5-year earnings CAGR and a -1.71% 1-year price return — has the market already priced in the earnings, or is there a sector-rotation or regulatory overhang not visible in the news feed?
Peer comparison: Pharma
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DIVISLAB | Divi's Laboratories Ltd.You're viewing | 67.8 | +16.2% | 51 |
| Industry avg | across 5 peers | 43.2 | +14.8% | 36 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 37.5 | +14.7% | 59 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 60.1 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 63.5 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 28.9 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 25.6 | +11.8% | 17 |
Technical state
Current price
₹6,553.50
SMA 50
₹6,398.43
SMA 200
₹6,313.42
RSI (14)
44.2 (neutral)
From 52w high
-6.9%
1Y return
-1.7%
3M return
+2.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highTrailing PE of 67.79 ranks last (6th of 6) among sector peers, whose PE ranges from 25.6 (Dr. Reddy) to 63.5 (Max Healthcare); at this premium the stock requires sustained earnings delivery to justify the gap.
- mediumROE exceeded 15% in only 1 of the tracked years (roeYearsAbove15 = 1; consistency score 50/100), indicating limited historical persistence of capital efficiency despite the current 16.19% ROE reading.
- mediumDebt trend is flagged as rising; while the absolute D/E ratio of 0.042 remains negligible, the directional shift is worth monitoring against an already-elevated earnings multiple.
- lowPrice is down 1.71% over 1 year and sits 6.9% below the 52-week high; the 3-month recovery of 2.47% has returned the stock above both SMA50 (₹6,398) and SMA200 (₹6,313), with RSI at 44.24 (neutral zone).
- lowNews sample is limited to 7 articles over the coverage window; with 4 positive and 0 negative items, the sentiment reading may not capture tail risks not yet in headlines.
Cross-section contradictions
- ROE has exceeded 15% in only 1 of the tracked years, yet the trailing PE of 67.79 is the highest in the 6-peer group — the valuation premium is not corroborated by demonstrated capital-efficiency persistence.
- The 5-year earnings growth of 13.6% is solid, but the 1-year price return of -1.71% shows the market has not rewarded that growth over the near term, diverging from the longer-run earnings trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days