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Divi's Laboratories Limited (DIVISLAB) Report Analysis

Corporate Events

Neutral

Divi's Laboratories Limited, Q1 2023 Earnings C...

2022-07-29 11:03:00

Divi's Laboratories Limited, Q1 2023 Earnings Call, Aug 12, 2022

Neutral

Divi's Laboratories Limited to Report Q1, 2023 ...

2022-07-28 10:24:00

Divi's Laboratories Limited announced that they will report Q1, 2023 results on Aug 12, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, Aug...

2022-07-28 10:24:00

Divi's Laboratories Limited, Board Meeting, Aug 12, 2022, at 11:00 Indian Standard Time. Agenda: To consider and approve the standalone and co...

Positive

Divi's Laboratories Limited, 30.0 (INR), Cash D...

2022-07-04 20:19:00

Divi's Laboratories Limited, 30.0 (INR), Cash Dividend, Aug-11-2022

Neutral

Divi's Laboratories Limited - Shareholder/Analyst Call

2022-07-04 10:51:00

AGM

Neutral

Divi's Laboratories Limited, Annual General Mee...

2022-07-04 10:51:00

Divi's Laboratories Limited, Annual General Meeting, Aug 22, 2022, at 10:00 Indian Standard Time. Location: Registered Office: 1-72/23(P)/Divi...

Positive

Divi's Laboratories Limited Recommends A Divide...

2022-05-23 07:04:00

The board of directors of Divi's Laboratories Limited meeting held on May 23, 2022, recommended a Dividend of INR 30 (i.e. 1500%) per equity s...

Neutral

Divi's Laboratories Limited, Q4 2022 Earnings C...

2022-05-16 11:16:00

Divi's Laboratories Limited, Q4 2022 Earnings Call, May 23, 2022

Neutral

Divi's Laboratories Limited to Report Q4, 2022 ...

2022-05-13 08:51:00

Divi's Laboratories Limited announced that they will report Q4, 2022 results on May 23, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, May...

2022-05-13 08:51:00

Divi's Laboratories Limited, Board Meeting, May 23, 2022, at 10:40 Indian Standard Time. Agenda: To consider and approve audited standalone an...

Neutral

Divi's Laboratories Limited, Q3 2022 Earnings C...

2022-02-03 09:40:00

Divi's Laboratories Limited, Q3 2022 Earnings Call, Feb 11, 2022

Neutral

Divi's Laboratories Limited to Report Q3, 2022 ...

2022-01-25 08:22:00

Divi's Laboratories Limited announced that they will report Q3, 2022 results on Feb 11, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, Feb...

2022-01-25 08:22:00

Divi's Laboratories Limited, Board Meeting, Feb 11, 2022. Agenda: To consider and approve the standalone and consolidated unaudited financial ...

Neutral

Divi's Laboratories Limited, Q2 2022 Earnings C...

2021-11-02 03:15:00

Divi's Laboratories Limited, Q2 2022 Earnings Call, Nov 06, 2021

Neutral

Divi's Laboratories Limited to Report Q2, 2022 ...

2021-10-28 09:01:00

Divi's Laboratories Limited announced that they will report Q2, 2022 results on Nov 06, 2021

Neutral

Divi's Laboratories Limited, Board Meeting, Nov...

2021-10-28 09:01:00

Divi's Laboratories Limited, Board Meeting, Nov 06, 2021, at 10:30 Indian Standard Time. Agenda: To consider and approve the standalone and co...

Neutral

Divi's Laboratories Limited, Q1 2023 Earnings Call, Aug 12, 2022

2022-07-29 11:03:00

Divi's Laboratories Limited, Q1 2023 Earnings Call, Aug 12, 2022

Neutral

Divi's Laboratories Limited to Report Q1, 2023 Results on Aug 12, 2022

2022-07-28 10:24:00

Divi's Laboratories Limited announced that they will report Q1, 2023 results on Aug 12, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, Aug 12, 2022

2022-07-28 10:24:00

Divi's Laboratories Limited, Board Meeting, Aug 12, 2022, at 11:00 Indian Standard Time. Agenda: To consider and approve the standalone and consolidated unaudited financial results for the quarter ended June 30, 2022.

Positive

Divi's Laboratories Limited, 30.0 (INR), Cash Dividend, Aug-11-2022

2022-07-04 20:19:00

Divi's Laboratories Limited, 30.0 (INR), Cash Dividend, Aug-11-2022

Neutral

Divi's Laboratories Limited - Shareholder/Analyst Call

2022-07-04 10:51:00

AGM

Neutral

Divi's Laboratories Limited, Annual General Meeting, Aug 22, 2022

2022-07-04 10:51:00

Divi's Laboratories Limited, Annual General Meeting, Aug 22, 2022, at 10:00 Indian Standard Time. Location: Registered Office: 1-72/23(P)/Divis/303, Divi Towers, Cyber Hills, Gachibowli Hyderabad India Agenda: To consider and adopt the audited financial statements of the Company, both standalone and consolidated, for the financial year ended March 31, 2022, and the reports of the Board of Directors' and Auditors' thereon; to declare dividend of INR 30/- per Equity Share of face value INR 2/- each (i.e. @ 1500%) for the financial year ended March 31, 2022; to reappointment of M/s. Price Waterhouse Chartered Accountants LLP as Statutory Auditors of the Company; and to consider any other matters.

Positive

Divi's Laboratories Limited Recommends A Dividend for the Year 2021-2022

2022-05-23 07:04:00

The board of directors of Divi's Laboratories Limited meeting held on May 23, 2022, recommended a Dividend of INR 30 (i.e. 1500%) per equity share of face value INR 2/- each for the financial year 2021-22, subject To Approve the members at the upcoming 32 nd Annual General Meeting (AGM). The dividend shall be credited/warrants thereof dispatched within 30 (thirty) days from the conclusion of the AGM. The AGM date and book closure /record date for the purpose of the payment of dividend will be informed in due course.

Neutral

Divi's Laboratories Limited, Q4 2022 Earnings Call, May 23, 2022

2022-05-16 11:16:00

Divi's Laboratories Limited, Q4 2022 Earnings Call, May 23, 2022

Neutral

Divi's Laboratories Limited to Report Q4, 2022 Results on May 23, 2022

2022-05-13 08:51:00

Divi's Laboratories Limited announced that they will report Q4, 2022 results on May 23, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, May 23, 2022

2022-05-13 08:51:00

Divi's Laboratories Limited, Board Meeting, May 23, 2022, at 10:40 Indian Standard Time. Agenda: To consider and approve audited standalone and consolidated financial results for the fourth quarter and year ended March 31, 2022; and to recommend dividend, if any, on equity shares of the Company for the financial year 2021-22.

Neutral

Divi's Laboratories Limited, Q3 2022 Earnings Call, Feb 11, 2022

2022-02-03 09:40:00

Divi's Laboratories Limited, Q3 2022 Earnings Call, Feb 11, 2022

Neutral

Divi's Laboratories Limited to Report Q3, 2022 Results on Feb 11, 2022

2022-01-25 08:22:00

Divi's Laboratories Limited announced that they will report Q3, 2022 results on Feb 11, 2022

Neutral

Divi's Laboratories Limited, Board Meeting, Feb 11, 2022

2022-01-25 08:22:00

Divi's Laboratories Limited, Board Meeting, Feb 11, 2022. Agenda: To consider and approve the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2021; to approve re-appointment of Dr. Ramesh B.V. Nimmagadda as an independent director for a second term of five years effective from June 27, 2022; to approve re-appointment of Dr. Ganapaty Seru as an independent director for a second term of five years effective from July 22, 2022; and to approve re-appointment of Ms. Nilima Prasad Divi as whole-time director (commercial) of the company for a period of 5 years effective from June 27, 2022.

Neutral

Divi's Laboratories Limited, Q2 2022 Earnings Call, Nov 06, 2021

2021-11-02 03:15:00

Divi's Laboratories Limited, Q2 2022 Earnings Call, Nov 06, 2021

Neutral

Divi's Laboratories Limited to Report Q2, 2022 Results on Nov 06, 2021

2021-10-28 09:01:00

Divi's Laboratories Limited announced that they will report Q2, 2022 results on Nov 06, 2021

Neutral

Divi's Laboratories Limited, Board Meeting, Nov 06, 2021

2021-10-28 09:01:00

Divi's Laboratories Limited, Board Meeting, Nov 06, 2021, at 10:30 Indian Standard Time. Agenda: To consider and approve the standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2021.

Fundamental Summary

According to their recent financial report, which was published on 2022-07-25, Divi's had several impressive financial metrics that should make them more attractive than their peers going forward. Their growth, value, and income factors indicate a well-executed and balanced strategy, which is generating exciting growth. This relative strength should allow Divi's to continue to perform well even in a tough market. Therefore, they earned a total score of 85 out of 100 and a BUY recommendation.

Divi's reported earnings results for the first quarter ended June 30, 2022. For the first quarter, the company reported sales was INR 22,545.2 million compared to INR 19,606.4 million a year ago. Revenue was INR 23,429.1 million compared to INR 19,966.1 million a year ago. Net income was INR 7,020.1 million compared to INR 5,571.1 million a year ago. Basic earnings per share from continuing operations was INR 26.44 compared to INR 20.99 a year ago. Diluted earnings per share from continuing operations was INR 26.44 compared to INR 20.99 a year ago.

Business Description

Divi's manufactures and sells generic active pharmaceutical ingredients (APIs) and intermediates, and nutraceutical ingredients in India, the United States, Asia, Europe, and internationally. It also undertakes custom synthesis of APIs and intermediates; and supplies a range of carotenoids, as well as markets vitamins to nutritional, pharma, food/beverage, and feed industries. The company was formerly known as Divi's Research Center and changed its name to Divi's in 1994. The company was incorporated in 1990 and is headquartered in Hyderabad, India.

Sector Overview

Divi's is included in the Life Sciences Tools & Services according to GICS (global industry classification standard). The Life Sciences Tools & Services industry is part of he Health Care sector. It includes companies involved in drug discovery, development and production by providing analytical tools, instruments, consumables and supplies, clinical trial services and contract research (including companies primarily serving the pharmaceutical and biotechnology industries). Divi's's industry and sector affiliation are expected to positively boost their relative likelihood to overperform the market looking forward, as they should benefit significantly from the macroeconomic environment we see now.

Fundamental Highlights


Parameter Value Change Score
Assets 133.7B 66.4% 69
Liabilities 16.5B 52.3% 67
Price to Book 10.0 51.5% 84
Cash & Equivalents 12.1B 9244.3% 93
Equity 117.3B 68.6% 78
EBITDA 38.8B 106.8% 82
Total Revenues 89.6B 81.1% 56
Parameter Value Change Score
Return on Equity 28.2 34.1% 61
Net Cashflow -8.2B -3652.1% 75
Capital Expenditure -7.1B 2.7% 76
Asset Turnover 0.7 11.2% 73
Free Cashflow Per Share 45.2 441.8% 84
* All values are TTM

The below chart reflects Divi's's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Divi's's peer average final assessment score stands on 67, Divi's's score is 85.

  •  DIVISLAB
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
Syngene International Limited 217.3B 79 74 72
Hold
78
78 0 1
Dishman Carbogen Amcis Limited 14.7B 73 65 51
Hold
70
70 1 1
Suven Life Sciences Limited 10.2B 59 46 66
Underperform
47
47 2 1
Vimta Labs Limited 7.1B 85 87 70
Buy
86
86 3 1
Windlas Biotech Limited 5.0B 75 68 56
Hold
69
69 4 1
Brooks Laboratories Limited 2.7B 65 62 57
Hold
61
61 5 1
Bilcare Limited 1.4B 78 52 72
Hold
70
70 6 1
Jeevan Scientific Technology Limited 936.4M 68 89 68
Buy
81
81 7 1
Vivo Bio Tech Limited 531.8M 74 49 39
Underperform
53
53 8 1
Vanta Bioscience Limited 509.7M 63 52 99
Hold
61
61 9 1

Macro Environment

Neutral
67

Typically, the stock market in India will react to recent economic events, as well as be influenced by the sentiment in other major economies around the world, such as the United States, European Union, and China. Our assessment is that these two events may influence global market sentiment. On the negative side we have the tensions between Taiwan and China, and on the positive side we have the end of Covid-19 pandemic.

Positive End of covid-19 pandemic

The World Health Organization issued six policy briefs outlining essential steps governments could take to stop the pandemic. The briefings, which are based on evidence and experience from the previous 32 months, provide guidance on how to save lives, protect health systems, and minimize social and economic disruption.

Negative Tensions between taiwan and china

The tensions between Taiwan and China have spiked following Nancy Pelosi's visit to Taipei. China staged war games near Taiwan to express its anger at what it saw as stepped-up U.S. support for the island Beijing views as sovereign Chinese territory. Because Taiwan produces the majority of the world's semiconductors, which are used in every electronic device today, a war between China and Taiwan might be catastrophic for the global economy.

Besides the events we mentioned, there are also specific events related to the Pharmaceuticals, Biotechnology & Life Sciences industry of which Divi's Laboratories Limited is a part. As a result, we believe that the rising inflation may cloud the sector's shares in the near time future.

Negative Rising inflation

The sudden increase in inflation is generally regarded as the most painful since it takes companies several quarters to pass on higher input costs to consumers. Historically, companies traded in the Pharmaceuticals, Biotechnology & Life Sciences industry have been hit by high inflation times due to increased operating expenses and decreased revenues.

In considering the current macro environment and the risks that might affect Divi's Laboratories Limited stock, we came to the conclusion that recent events aren't likely to affect the company's performance in the short term, and thus rated Divi's Laboratories Limited macro environment with the score of 67.

Technical Analysis

When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Divi's's stock is now priced above its 5-day and 50-day, but below its 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a positive setup in both the short and medium-term. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Divi's's stock doesn't strongly signal being overbought or oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 52.

Bearish 52
Close Price 3703.35
52W Low 3448.7
52W High 5372.15
5D MA 3655.25
50D MA 3697.01
200D MA 4055.58
MACD -2.03
RSI 50.76
STOCH 100.0

Balance Sheet Analysis

Divi's appears likely to maintain its strong balance sheet metrics and momentum going forward. Divi's's management was effective in improving its cash and cash equivalents metrics, which now sit at 12.1B. This represents 9244.3% change from the last reporting period. Its impressive cash and cash equivalents metrics should support upward pressure on its's stock price. Therefore, its cash and cash equivalents movement earned a score of 93. Also, Divi's's price to book ratio (P/B) was reported as 10.0 and represents 51.5% change from the previous report. Their industry-leading book value factors momentum reinforces an expectation for future positive momentum for their stock price going forward. Consequently, their book value factors movement received a grade of 84. On the other hand, Liabilities, jumped out as looking rather underwhelming. Divi's's liabilities stood at 16.5B in the current filing, which represents a 52.3% change from the previous report. These liabilities metrics show that management has been unsuccessful in encouraging healthy growth while managing liabilities. Therefore, we rated their liabilities movement with a score of 67. Similarly, because the company's management is doing an excellent job managing these critical metrics, the balance sheet was given a score of 84.

Parameter Value Change Score
Assets 133.7B 66.4% 69
Liabilities 16.5B 52.3% 67
Price to Book 10.0 51.5% 84
Cash & Equivalents 12.1B 9244.3% 93
Equity 117.3B 68.6% 78
* All values are TTM

The below chart describes Divi's's performance as reflected on its balance sheet with respect to its peers. While Divi's received a balance sheet score of 84, the average of its peers stands on 69.

  •  DIVISLAB
  •  Peers average
Name Market Cap Liabilities Movement Asset Change Equity/Intangibles Adjustments Cash & Equivalents Book Value Momentum Balance Sheet mc_sort Hidden
Syngene International Limited 217.3B 60.0 69.0 62.0 77.0 87.0 79 0 1
Dishman Carbogen Amcis Limited 14.7B 61.0 76.0 76.0 53.0 73.0 73 1 1
Suven Life Sciences Limited 10.2B 50.0 63.0 49.0 61.0 63.0 59 2 1
Vimta Labs Limited 7.1B 61.0 69.0 82.0 85.0 87.0 85 3 1
Windlas Biotech Limited 5.0B 67.0 66.0 70.0 79.0 77.0 75 4 1
Brooks Laboratories Limited 2.7B 66.0 69.0 54.0 39.0 89.0 65 5 1
Bilcare Limited 1.4B 70.0 63.0 74.0 68.0 89.0 78 6 1
Jeevan Scientific Technology Limited 936.4M 60.0 84.0 76.0 40.0 46.0 68 7 1
Vivo Bio Tech Limited 531.8M 68.0 90.0 72.0 51.0 50.0 74 8 1
Vanta Bioscience Limited 509.7M 62.0 41.0 80.0 47.0 74.0 63 9 1

Income Statement Analysis

Taking a comprehensive view of Divi's's income statement statement, especially relative to their peers, Divi's looks likely to be able to maintain modest momentum. Divi's reported impressive EBITDA this period. At filing, EBITDA was reported as 38.8B, representing 106.8% change from the previous period. Companies in the same industry and market capitalization are typically affected by this parameter by up to 23.9%. Its EBITDA metrics highlight an impressive overall financial performance, which is expected to continue moving forward. Consequently, their EBITDA movement received a grade of 82. On the other hand, Revenue Efficiency, jumped out as looking problematic. Divi's's revenue efficiency metrics look especially concerning this period, highlighting issues management is having controlling and reducing expenses while increasing earnings. This metric might have a 12.2 percent impact on companies in the same industry and with the same market capitalization. Their revenue efficiency does not make a compelling case for upward pressure on the company's stock price. Its revenue efficiency, therefore, received a grade of 56. Consequently, their income statement earned a rank of 76.

Parameter Value Change Score
EBITDA 38.8B 106.8% 82
Total Revenues 89.6B 81.1% 56
Return on Equity 28.2 34.1% 61
* All values are TTM

The below chart describes Divi's's performance as reflected on its income statement with respect to its peers. While Divi's received a income statement score of 76 , the average of its peers stands on 67.

  •  DIVISLAB
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
Syngene International Limited 217.3B 63.0 75.0 68.0 74 0 1
Dishman Carbogen Amcis Limited 14.7B 74.0 65.0 62.0 65 1 1
Suven Life Sciences Limited 10.2B 45.0 45.0 41.0 46 2 1
Vimta Labs Limited 7.1B 82.0 87.0 84.0 87 3 1
Windlas Biotech Limited 5.0B 74.0 66.0 69.0 68 4 1
Brooks Laboratories Limited 2.7B 89.0 62.0 56.0 62 5 1
Bilcare Limited 1.4B 44.0 49.0 66.0 52 6 1
Jeevan Scientific Technology Limited 936.4M 93.0 88.0 87.0 89 7 1
Vivo Bio Tech Limited 531.8M 53.0 49.0 49.0 49 8 1
Vanta Bioscience Limited 509.7M 41.0 52.0 52.0 52 9 1

Cash Flow Analysis

Taking a comprehensive view of Divi's's cash flow statement, especially relative to their peers, Divi's looks likely to be able to maintain modest momentum. Divi's did a great job related to free cash flow this period, which stood at 45.2, representing a 441.8% change from the previous filing. Companies in the same industry and market capitalization are typically affected by this parameter by up to 1.2%. Their free cash flow situation is all the more impressive relative to their peers and competitors. Consequently, their free cash flow movement received a grade of 84. Also, Divi's's published capital expenditures (CapEx) numbers were encouraging and reflected management's balanced change strategy. Divi's recorded CapEx of -7.1B, which represents 2.7% change from the previous report. This remarkable CapEx growth is expected to reinforce upward momentum for its's stock price going forward. Therefore, its CapEx movement component earned a score of 76. That said, one metric, Asset Turnover, stood out as particularly concerning. Divi's's asset turnover numbers were discouraging, reflecting significant concerns related to management's ability to leverage assets to generate sales effectively and efficiently. Divi's recorded asset turnover of 0.7, which represents a 11.2% change from the previous report. Companies in the same sector and market capitalization will usually be affected by up to 4.2 percent by this parameter. Their asset turnover numbers are significantly less impressive when compared to their peers and competitors. Therefore, their asset turnover movement earned a score of 73. The company's cash flow received an overall score of 79.

Parameter Value Change Score
Net Cashflow -8.2B -3652.1% 75
Capital Expenditure -7.1B 2.7% 76
Asset Turnover 0.7 11.2% 73
Free Cashflow Per Share 45.2 441.8% 84
* All values are TTM

The below chart describes Divi's's performance as reflected on its cash flow with respect to its peers. While Divi's received a cash flow score of 79, the average of its peers stands on 63.

  •  DIVISLAB
  •  Peers average
Name Market Cap Cashflow Momentum Free Cashflow Growth Capital Expenditure Growth Assets Factors Momentum Cash Flow mc_sort Hidden
Syngene International Limited 217.3B 66.0 84.0 79.0 68.0 72 0 1
Dishman Carbogen Amcis Limited 14.7B 45.0 66.0 82.0 55.0 51 1 1
Suven Life Sciences Limited 10.2B 56.0 86.0 67.0 54.0 66 2 1
Vimta Labs Limited 7.1B 79.0 41.0 77.0 53.0 70 3 1
Windlas Biotech Limited 5.0B 50.0 71.0 68.0 61.0 56 4 1
Brooks Laboratories Limited 2.7B 68.0 71.0 90.0 39.0 57 5 1
Bilcare Limited 1.4B 70.0 79.0 84.0 60.0 72 6 1
Jeevan Scientific Technology Limited 936.4M 93.0 41.0 92.0 46.0 68 7 1
Vivo Bio Tech Limited 531.8M 46.0 56.0 46.0 52.0 39 8 1
Vanta Bioscience Limited 509.7M 96.0 72.0 70.0 96.0 99 9 1

This report, prepared and provided by Deshe Labs Ltd ("Deshe"), is intended for general guidance and information purposes only and under no circumstances is tailored to a specific factor or variable related to its reader or intended to be used, construed, or considered as financial or investment advice, an offer, a solicitation of any offer, a recommendation, or an offer to invest in, sell or buy the securities mentioned in this report or other form of a financial asset or as a marketing communication under FCA Rules. For the full disclaimer, click here.