pharma · DIVISLAB
Divi's Laboratories
Divi's Laboratories: PE above historical average. NARROW LEADERSHIP regime. sector leading.
Price
₹7,835
Price 2026-07-30
5 day
+8.09%
Short-term move
1 month
+19.09%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹179.8k Cr
inflow sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Divi's Laboratories (DIVISLAB) in the pharma sector?”
Price chart
₹7,425
+9.54% over period
About Divi's Laboratories
Divi's Laboratories Limited engages in the manufacture and sale of generic active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals in India, North America, Asia, Europe, and internationally. The company also undertakes custom synthesis contract manufacturing services of APIs and intermediates; and supplies a range of carotenoids, such as astaxanthin, beta-carotene, lycopene, canthaxanthin, apocarotenal, and vitamins used in the food, beverage, dietary supplement, pet food, and feed industries. It also exports its products. The company was formerly known as Divi's Research Center and changed its name to Divi's Laboratories Limited in 1994. Divi's Laboratories Limited was incorporated in 1990 and is based in Hyderabad, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -9.6% over 14 days) — not a reliable pattern.
52-week position
Trading at 110.8% of 52-week high
Technicals
RSI 14
87
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
70.0
57th pct · 7 quarterly points (limited history)
P/B
10.7
ROE
16.2%
Moderate profitability — 16.2% ROE
Market cap
₹179.8k Cr
Revenue growth
950.0% YoY
Promoter
52.0%
52-week range
₹5,636.5 – ₹7,071.5
110.8% of high
RSI (14)
87.0
uptrend
vs 50 DMA
Above
DMA ₹6,883.93
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Divi's Laboratories scores 85/100 on fundamentals (strong). Divi's Laboratories: PE above historical average. NARROW LEADERSHIP regime. sector leading.
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 24.4%, asset turnover 0.52x, leverage 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
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| CIPLA Cipla | ₹1,466.4 | +5.3% | 30.2 | 11.7% | -210% | ₹1.2L Cr |
| DRREDDY Dr. Reddy's Laboratories | ₹1,144.8 | -1.8% | 26.5 | 11.8% | -1160% | ₹1.1L Cr |
| AUROPHARMA Aurobindo Pharma | ₹1,576.3 | +3.5% | 26.3 | 9.9% | 560% | ₹91.1k Cr |
| ALKEM Alkem Laboratories | ₹5,816.5 | +3.8% | 29.4 | 17.6% | 1460% | ₹67.8k Cr |
| BIOCON Biocon | ₹425.35 | -2.3% | 145.3 | 1.1% | 230% | ₹66.3k Cr |
| GLENMARK Glenmark Pharmaceuticals | ₹2,190.3 | -0.7% | 47 | 14.1% | 1430% | ₹63.9k Cr |
| GLAND Gland Pharma | ₹2,517 | +5.9% | 40.9 | 10.5% | 2230% | ₹42.1k Cr |
| JBCHEPHARM J B Chemicals | ₹2,408.9 | +0.0% | 54.5 | 18.7% | -480% | ₹38.9k Cr |
| DIVISLAB Divi's Laboratories | ₹7,835 | +7.7% | 70 | 16.2% | 950% | ₹1.8L Cr |
Tensions to watch
Promoter holding at 52.0% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹8227 (+5%)
Trend reversal confirmation
Breaks below ₹7443 (-5%)
Further downside risk
PE reverts to median of 68.4 (7 quarterly points (limited history))
Valuation normalization
Pharma sector holding leadership position
Sector momentum continuing
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Potential accounting concerns. Cross-check with earnings quality flags.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
