Divi's Laboratories Ltd.
Pharma · NSE
52-week range
₹5,637 – ₹7,039
From 52w high
-4.7%
RSI (14)
73.5
vs SMA 50 / 200
↑ 50 · ↑ 200
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.
- ✓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.
- ✗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%.
- ·Q4 FY25 earnings were summarised by Quartr in April 2026 with no disclosed directional commentary in available headlines; detailed results would be needed to assess whether the earnings-to-revenue divergence has begun to narrow.
- ·Open interest in DIVISLAB derivatives surged in late April 2026 according to Markets Mojo — often associated with increased positioning ahead of or following a catalyst, though the direction of that positioning is not specified in available data.
- ·With 30 analysts covering the stock but no mean rating score available in the current dataset, the breadth of institutional coverage is confirmed but the consensus direction cannot be characterised from present data.
- ?Does the divergence between 12.3% revenue growth and -1% earnings growth over 5 years reflect a structural shift in input costs (APIs, solvents, labour), or is it attributable to a specific investment cycle that management expects to normalise?
- ?How does DIVISLAB's specialty pharma and CDMO mix compare to peers like Dr. Reddy's (PE 19.1) and Cipla (PE 23.9) — and does the business model difference justify a PE premium of 3–4x those peers?
- ?With FCF positive in 4 of available years but ROE above 15% in only 1 year, is the cash generation being deployed in ways that are accretive to return on equity, or is the capital allocation cycle depressing returns?
- ?Given RSI at 73.49 and resistance at ₹6,731.5–₹6,793, how have prior overbought episodes resolved for this stock historically — and what has driven those resolutions (earnings beats, macro shifts, or mean-reversion)?
PE
71.9
Forward PE
57.4
ROE
—
Profit margin
+24.0%
D/E
0.58
Dividend yield
+0.5%
Quality score
34/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 10 May 2026.