Divi''s Laboratories Ltd.

NSE: DIVISLAB BSE: 532488 SECTOR: Pharmaceuticals & Drugs

4197.3
-105.05 (-2.44%)
NSE: 18 Jun 03:59 PM

Price Summary

Today's High

₹ 4363.95

Today's Low

₹ 4146.5

52 Week High

₹ 4425

52 Week Low

₹ 2090.05

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyExcellent
The company knows very well the utilization of its assets.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

Company Essentials

Market Cap

111425.13 Cr.

Enterprise Value

111351.4 Cr.

No. of Shares

26.55 Cr.

P/E

57

P/B

12.02

Face Value

₹ 2

Div. Yield

0.48%

Book Value (TTM)

₹  349.25

CASH

107.36 Cr.

DEBT

33.63 Cr.

Promoter Holding

51.95%

EPS (TTM)

₹  73.63

Sales Growth

8.83%

ROE

19.21 %

ROCE

25.23 %

Profit Growth

3.01 %

* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

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Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.
* The chart is based on the standalone earnings of the company.

Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Group Companies

Ratios

Sales Growth

1 Year8.83%
3 Year9.69%
5 Year11.48%

Profit Growth

1 Year3.01%
3 Year9.23%
5 Year10.14%

ROE%

1 Year19.21%
3 Year18.37%
5 Year20.95%

ROCE %

1 Year25.23%
3 Year24.86%
5 Year27.48%

Debt/Equity

0.0046

Price to Cash Flow

92.2

Interest Cover Ratio

258.935988620199

CFO/PAT (5 Yr. Avg.)

0.892602827020268

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Mar 2021 51.95 0
Dec 2020 51.95 0
Sep 2020 51.96 0
Jun 2020 51.97 0
Mar 2020 51.97 0
* Figures given above are % of equity capital

 Strengths

  • The company has significantly decreased its debt by 71.97 Cr.
  • Company has been maintaining healthy ROCE of 24.8642909004024% over the past 3 years.
  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 258.935988620199.
  • The Company has been maintaining an effective average operating margins of 35.4995726243084% in the last 5 years.
  • Company has a healthy liquidity position with current ratio of 3.09181026805593.
  • The company has a good cash flow management; CFO/PAT stands at 0.892602827020268.
  • The company has a high promoter holding of 51.95%.

 Limitations

  • The company has shown a poor profit growth of 9.23111353339943% for the Past 3 years.
  • The company has shown a poor revenue growth of 9.68985228640573% for the Past 3 years.
  • The company is trading at a high EV/EBITDA of 38.5792.

Quarterly Result (All Figures in Cr.)

PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Net Sales 1376.24 1709.96 1713.78 1656.48 1718.39
Total Expenditure 927.6 1010.98 981.39 978.03 1019.04
Operating Profit 448.64 698.98 732.39 678.45 699.35
Other Income 76.52 17.87 13.64 19.68 22.85
Interest 0.4 0.18 0.11 0.22 0.18
Depreciation 49.54 55.97 60.89 67.95 69.84
Exceptional Items 0 0 0 0 0
Profit Before Tax 475.22 660.7 685.03 629.96 652.18
Tax 83.42 168.45 171.73 168.72 164.25
Profit After Tax 391.8 492.25 513.3 461.24 487.93
Adjusted EPS (Rs) 14.76 18.54 19.34 17.38 18.38

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Net Sales 3721.33 4023.85 3815.94 4879.66 5310.57
Total Expenditure 2319.91 2584.97 2564.33 3029.59 3494.16
Operating Profit 1401.42 1438.88 1251.61 1850.07 1816.41
Other Income 95.92 75.94 112.48 156.58 189.86
Interest 3.94 3.33 2.31 4.61 7.03
Depreciation 118.1 123.26 142.42 168.81 185.95
Exceptional Items 0 0 0 0 0
Profit Before Tax 1375.29 1388.23 1219.36 1833.23 1813.29
Tax 264.45 334.96 349.78 500.58 440.58
Net Profit 1110.84 1053.27 869.58 1332.65 1372.71
Adjusted EPS (Rs.) 41.84 39.68 32.76 50.2 51.71

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Equity and Liabilities
Share Capital 53.09 53.09 53.09 53.09 53.09
Total Reserves 4303.95 5355.82 5906.56 6920.22 7263.6
Borrowings 0.47 0 0 0 0
Other N/C liabilities 91.86 1418.95 1769.95 993.72 294.48
Current liabilities 516.12 655.84 640.49 832.52 1796.64
Total Liabilities 4965.49 7483.7 8370.09 8799.55 9407.81
Assets
Net Block 1438.64 1558.95 1995.88 2087.44 2776.26
Capital WIP 263.91 443.57 119.76 491.91 919.69
Intangible WIP 0 0 0 0 0
Investments 10.19 8.37 7.37 554.62 7.37
Loans & Advances 188.87 1424.88 1688.04 1012.93 144.18
Other N/C Assets 5.78 8.78 5.13 5.16 5.44
Current Assets 3058.1 4039.15 4553.91 4647.49 5554.87
Total Assets 4965.49 7483.7 8370.09 8799.55 9407.81
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Profit from operations 1375.29 1388.23 1219.36 1833.23 1813.29
Adjustment 69.27 81.1 29.72 86.71 52.55
Changes in Assets & Liabilities -147.34 -18.52 -215.81 -472.96 -211.4
Tax Paid -260.89 -301.7 -268.55 -482.92 -445.97
Operating Cash Flow 1036.34 1149.11 764.72 964.06 1208.47
Investing Cash Flow -411.16 -1137.41 -475.89 -684.24 -81.38
Financing Cash Flow -630.34 3.27 -314.17 -245.94 -1091.25
Net Cash Flow -5.17 14.97 -25.34 33.88 35.84

Corporate Actions

Investors Details

PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Promoters 51.97 51.97 51.96 51.95 51.95
DIVI BABU RAJENDRA PRASAD... 0.01 0.01 0.01 0 0
DIVI MADHUSUDANA RAO 0.14 0.13 0.13 0.11 0.11
DIVI SATCHANDRA KIRAN 20.34 20.34 20.34 20.34 20.34
DIVI SWARNA LATHA 5.27 5.27 5.27 5.27 5.27
DIVIS BIOTECH PRIVATE LIM... 0 3.01 0 0 0
MURALI KRISHNA PRASAD DIV... 2.85 2.85 2.85 2.85 2.85
NILIMA MOTAPARTI 20.34 20.34 20.34 20.34 0
BABU RAJENDRA PRASAD DIV... 0 0 0 0.01 0.01
NILIMA PRASAD DIVI 0 0 0 0 20.34
PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Public 13.35 13.07 10.96 10.83 11.45
IEPF 0.01 0.01 0.01 0.01 0.01
Qualified Institutional B... 1.36 0 0 0 0
PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
FII/DII 34.67 34.97 37.08 37.23 36.61
AXIS MUTUAL FUND TRUSTEE ... 2.45 3.46 2.93 3.03 3.14
GOVERNMENT PENSION FUND G... 1.68 1.59 1.58 1.63 1.28
PINEBRIDGE INVESTMENTS GF... 0 0 0 0 0
RELIANCE CAPITAL TRUSTEE ... 1.89 1.47 1.29 0 0
SBI MUTUAL FUND 4.89 4.69 4.99 4.84 4.69
AMUNDI FUNDS SBI FM EQUIT... 0 0 0 0 0
LIFE INSURANCE CORPORATIO... 0 1.14 1.14 1.15 1.15
Qualified Institutional B... 0 0 3.68 3.36 0

Divi''s Lab Stock Price Analysis and Quick Research Report. Is Divi''s Lab an attractive stock to invest in?

 

The Indian healthcare sector is expected to reach US$ 372 billion by 2022, driven by rising incomes, greater health awareness, lifestyle diseases and increasing access to insurance. Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.

Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The structure of the healthcare delivery system in India consists of three broad segments: Primary care, Secondary care, and Tertiary care.

  • Primary care is the first point of contact between the population and the healthcare service providers. For example, Sub-center (SC), Primary Health Centre (PHC) and Community Health Centre (CHC) which is more relevant to rural areas (PHC’s).
  • Secondary care providers inpatient as well as outpatient medical services and includes simple surgical procedures. For example, District level & Mid-sized hospitals.
  • Tertiary care is the third level of the healthcare delivery system in the country. These hospitals are specialized consultative healthcare infrastructure. For example, Single specialty and Multi-specialty hospitals.

While healthcare services are offered by the public as well as private sectors, in urban as well as rural areas, generally people prefer private hospitals over public hospitals for treatment of diseases, illness, and sickness. So, let’s look into Divi''s Lab and its performance over the period of time.

  • Operating cash flow ratio: It measures the adequacy of a company’s cash generated from operating activities to pay off short-term financial obligations. Its cash from the operating activity was Rs 1208.47 Cr.
     
  • Financial Strength: Health care organizations usually have high debt loads and low equity capital in their balance sheet. So, Debt to Equity ratio is important to analyze the company’s sustainability. Divi''s Lab has a Debt to Equity ratio of 0.0046 , which is a strong indication for the company.
     
  • EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Divi''s Lab , the EPS growth was 3.00617089679185 % which is bad for the company.
     
  • Operating profit margin: It determines a company's potential earnings. It assesses how well-managed a company with respect to its basic overhead costs and other operating expenses, Divi''s Lab has OPM of 34.2036730520453 % which is a good sign for profitability.
     
  • ROE: Divi''s Lab have a average ROE of 19.2121763470959 %. ROE is an important financial parameter for hospitals & health care companies because they expand and grow rapidly. Therefore, ROE measures how efficiently a shareholder's fund is used for generating profits.
Brief about Divi''s Lab

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