pharma
Divi's Laboratories
DIVISLAB · Nifty 50
₹6,663.5
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Divi's Laboratories scores 85/100 on fundamentals (strong). Divi's Laboratories: BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 15.2% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 15.16% is moderate margin-driven and stable. Net margin of 24.4% × asset turnover of 0.52x × leverage of 1.2x.
What This Means
Net margin of 24.4% means the company keeps ₹24.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.52x means the company efficiently uses its assets to generate revenue. Leverage of 1.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
61.6%
Operating
32.2%
Net
24.4%
Gross margin 61.6% → operating margin 32.2% → net margin 24.4%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.1x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 209.8x — very comfortable. Debt service is not a concern.
Free Cash Flow
MODERATEFCF margin at 2.1% — barely positive. Limited cash after capex.
Peer Comparison
Divi's Laboratories is compared against 10 peers in the pharma sector.
Key Watchpoints
Breaks above ₹6997 (+5%)
Trend reversal confirmation
Breaks below ₹6330 (-5%)
Further downside risk
Pharma sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes