{"id":1794,"date":"2020-08-27T19:04:11","date_gmt":"2020-08-27T13:34:11","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=1794"},"modified":"2022-02-10T16:11:54","modified_gmt":"2022-02-10T10:41:54","slug":"should-you-buy-divis-laboratories-shares","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/","title":{"rendered":"Guide On Divi&#8217;s Laboratory Shares: Things To Know Before Buying In 2022"},"content":{"rendered":"\n<p>Ever since the pandemic started, the<a href=\"https:\/\/www.tickertape.in\/blog\/indian-pharma-sector-before-during-and-after-covid-19\/?ref=blog\"> pharmaceutical industry has been in the limelight, you can read the details in an earlier article<\/a> that we wrote. Among other Indian players, Divis Laboratories, one of the well-known pharma companies in Hyderabad, stands out for more than just one reason. Divis share price has zoomed 112% in the last year. In recent times, Divis Laboratories share price has gained quite some traction on reporting impressive Q1 FY2021 results and being included in the Nifty 50 <a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-index\/\">index<\/a>.<\/p>\n\n\n\n<p>Let\u2019s take this opportunity to evaluate Divis Laboratories Ltd\u2019s business profile, financials, and understand why it is included in the Nifty 50 index.<\/p>\n\n\n\n<p><strong>The article covers:<\/strong><\/p>\n\n\n\n<p><a href=\"#Overview\">Overview of Divis Laboratories<\/a><\/p>\n\n\n\n<p><a href=\"#Milestones\">Milestones of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#BOD\">Board of Directors of Divis Laboratories<\/a><\/p>\n\n\n\n<p><a href=\"#Subsidiary\">Subsidiary companies of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#Segments\">Business segments of Divis Laboratories Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Products\">Products of Divis Laboratories<\/a><\/p>\n\n\n\n<p><a href=\"#Peers\">Peers of Divis Laboratories Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Share\">Divis Laboratories share price<\/a><\/p>\n\n\n\n<p><a href=\"#Financials\">Last 4 yrs\u2019 financials of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#Income\">Income statement of Divis Laboratories Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Balance\">Balance sheet of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#Cashflow\">Cashflow statement of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#Recent\">Recent developments in Divis Laboratories Ltd<\/a><\/p>\n\n\n\n<p><a href=\"#Opportunities\">Opportunities for Divis<\/a><\/p>\n\n\n\n<p><a href=\"#Risks\">Risks of Divis Labs<\/a><\/p>\n\n\n\n<p><a href=\"#Conclusion\">Conclusion<\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Overview-of-Divis-Laboratories\" title=\"Overview of Divis Laboratories\">Overview of Divis Laboratories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#About-Divis-Labs\" title=\"About Divis Labs\">About Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Milestones-of-Divis-Laboratories\" title=\"Milestones of Divis Laboratories\">Milestones of Divis Laboratories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Board-of-Directors-of-Divis-Labs\" title=\"Board of Directors of Divis Labs\">Board of Directors of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Subsidiary-companies-of-Divis-Labs\" title=\"Subsidiary companies of Divis Labs\">Subsidiary companies of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Business-segments-of-Divis-Laboratories-Ltd\" title=\"Business segments of Divis Laboratories Ltd\">Business segments of Divis Laboratories Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Products-of-Divis-Laboratories-Ltd\" title=\"Products of Divis Laboratories Ltd\">Products of Divis Laboratories Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Peers-of-Divis-Laboratories\" title=\"Peers of Divis Laboratories\">Peers of Divis Laboratories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Divis-Laboratories-share-price\" title=\"Divis Laboratories share price\">Divis Laboratories share price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Last-4-yrs-financials-of-Divis-Labs\" title=\"Last 4 yrs\u2019 financials of Divis Labs\">Last 4 yrs\u2019 financials of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Income-statement-of-Divis-Laboratories-Ltd\" title=\"Income statement of Divis Laboratories Ltd\">Income statement of Divis Laboratories Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Balance-sheet-of-Divis-Labs\" title=\"Balance sheet of Divis Labs\">Balance sheet of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Cashflow-of-Divis-Labs\" title=\"Cashflow of Divis Labs\">Cashflow of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Recent-developments-in-Divis-Laboratories-Ltd\" title=\"Recent developments in Divis Laboratories Ltd\">Recent developments in Divis Laboratories Ltd<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Opportunities-for-Divis\" title=\"Opportunities for Divis\">Opportunities for Divis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Risks-of-Divis-Labs\" title=\"Risks of Divis Labs\">Risks of Divis Labs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/should-you-buy-divis-laboratories-shares\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\" id=\"Overview\"><span class=\"ez-toc-section\" id=\"Overview-of-Divis-Laboratories\"><\/span><strong>Overview of <\/strong><strong>Divis Laboratories<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Labs has been a crucial player in the arena of manufacturing active pharmaceutical ingredients (API). Today, the 30-yr old drug firm has established itself as one of the top 3 API manufacturers of India and also as one of the recognized global leaders in the domain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"About\"><span class=\"ez-toc-section\" id=\"About-Divis-Labs\"><\/span><strong>About Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Started in Hyderabad in 1990, Divis Labs owns 2 manufacturing units, one in Hyderabad and the other in Vizag. These have been inspected several times by various health authorities including USFDA, EU GMP, TGA, HEALTH CANADA, TGA, ANVISA, and COFEPRIS.<\/p>\n\n\n\n<p>Divis Laboratories is considered to be a \u2018Reliable Supplier of Generic APIs\u2019 and a trustworthy \u2018Custom Manufacturer\u2019 to \u2018Big Pharma\u2019, the global pharmaceutical industry. It is backed by highly competent management, 11,000 highly-trained professionals, and 350 scientists, together who work to offer world-class products that adhere to the highest compliance levels to over 95 countries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Milestones\"><span class=\"ez-toc-section\" id=\"Milestones-of-Divis-Laboratories\"><\/span>Milestones of Divis Laboratories<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Following is a timeline displaying various achievements of Divis Laboratories Ltd:<\/p>\n\n\n\n<ul><li>1990: Established Divi&#8217;s Research Centre (DRC)<\/li><li>1995: Set up its 1<sup>st<\/sup> manufacturing facility operations at Choutuppal, near Hyderabad<\/li><li>1997: Filed its 1<sup>st<\/sup> first USDMF<\/li><li>1999: Filed its 1<sup>st<\/sup> Certificate of Suitability (CoS) in Europe<\/li><li>2000: 1<sup>st<\/sup> USFDA inspection<\/li><li>2002: Started its 2<sup>nd<\/sup> manufacturing facility at Chippada, near Visakhapatnam<\/li><li>2003: Went public by issuing an <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> and got listed in BSE and <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a><\/li><li>2005: Won a National Award for Excellence in Water Management by the Confederation of Indian Industry (CII)<\/li><li>2007: Launched a Nutraceutical facility at Chippada unit<\/li><li>2008: 1<sup>st<\/sup> MFDS (Korea) inspection<\/li><li>2010: Started a new Research Centre in Hyderabad<\/li><li>2011: 1st EU GMP and Japan PMDA inspection<\/li><li>2012: MD was given the India Business Leader Award by CNBC TV18<\/li><li>2012: 1st TGA inspection<\/li><li>2012: Received CNBC TV 18\u2019s India Business Leader Award \u2018First Generation Entrepreneur of the Year\u2019<\/li><li>2013: 1st Slovenian Medicines Agency inspection<\/li><li>2013: Ministry of Commerce &amp; Industry awarded the \u201cPremier Trading House\u201d certificate<\/li><li>2014: Won The Golden Peacock Award for CSR initiatives2014: Crossed sales revenue of Rs 2500 cr with 18% growth rate<\/li><li>2014: First COFEPRIS inspection<\/li><li>2015: Inaugurated its Corporate Office in Hyderabad<\/li><li>2016: Crossed sales revenue of Rs 3,700 cr with a 22% growth rate<\/li><li>2017: Made it to the top 3 API manufacturers in the world and top API companies in Hyderabad<\/li><li>2018: Reached the <a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalization\/\">market capitalisation<\/a> of $5 bn<\/li><li>2018: Added more to the product portfolio to reach the mark of over 30<\/li><li>2019: Commenced expansion of manufacturing facilities with Rs 1800 cr<\/li><li>2019: Joined the list of the largest API manufacturers in the world<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"BOD\"><span class=\"ez-toc-section\" id=\"Board-of-Directors-of-Divis-Labs\"><\/span><strong>Board of Directors of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Labs\u2019 board comprises of 12 members<\/p>\n\n\n\n<ul><li>Managing Director: Dr. Murali K. Divi<\/li><li>Executive Director: N. V. Ramana<\/li><li>Whole-time Director &amp; CEO: Dr. Kiran S. Divi<\/li><li>Whole-time Director (Commercial): Nilima Motaparti<\/li><li>Whole-time Director (Projects): Madhusudana Rao Divi<\/li><li>Independent Director: R. Ranga Rao<\/li><li>Independent Director: K. V. K Sheshavataram:<\/li><li>Independent Director: Dr. S. Ganapathy<\/li><li>Independent Director: Prof. Sunaina Singh<\/li><li>Independent Director: K. V. Chowdhary<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Subsidiary\"><span class=\"ez-toc-section\" id=\"Subsidiary-companies-of-Divis-Labs\"><\/span><strong>Subsidiary companies of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Labs has two fully-owned subsidiary companies:<\/p>\n\n\n\n<ul><li>Divi\u2019s Laboratories (USA) Inc.<\/li><li>Divi\u2019s Laboratories (Europe) AG.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Segments\"><span class=\"ez-toc-section\" id=\"Business-segments-of-Divis-Laboratories-Ltd\"><\/span><strong>Business segments of <\/strong><strong>Divis Laboratories Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Generic APIs<\/li><li>Custom Synthesis<\/li><li>Nutraceuticals<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Products\"><span class=\"ez-toc-section\" id=\"Products-of-Divis-Laboratories-Ltd\"><\/span><strong>Products of <\/strong><strong>Divis Laboratories Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Labs\u2019 products are known to be of high quality and pass through stringent quality checks. It offers over 30 products including:<\/p>\n\n\n\n<ul><li>Capecitabine<\/li><li>Carbidopa<\/li><li>Diltiazem HCl<\/li><li>Dextromethorphan Base<\/li><li>Dextromethorphan HBr<\/li><li>Fosphenytoin Sodium<\/li><li>Gabapentin<\/li><li>Iopamidol<\/li><li>Pregabalin<\/li><li>Beta-Carotene<\/li><li>Canthaxanthin<\/li><li>Vitamin D<\/li><li>Vitamin A<\/li><li>Vitamin E<\/li><li>Lycopene<\/li><li>Lutein<\/li><li>Astaxanthin<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Peers\"><span class=\"ez-toc-section\" id=\"Peers-of-Divis-Laboratories\"><\/span><strong>Peers of <\/strong><strong>Divis Laboratories<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Labs competes with peers including<a href=\"https:\/\/www.tickertape.in\/stocks\/syngene-international-SYNN?ref=blog\"> Syngene International Ltd<\/a>,<a href=\"https:\/\/www.tickertape.in\/stocks\/dishman-carbogen-amcis-DSHM?ref=blog\"> Dishman Carbogen Amics Ltd<\/a>,<a href=\"https:\/\/www.tickertape.in\/stocks\/vimta-labs-VIML?ref=blog\"> Vimta Labs Ltd<\/a>, and<a href=\"https:\/\/www.tickertape.in\/stocks\/brooks-laboratories-BROO?ref=blog\"> Brooks Laboratories Ltd<\/a>. Here\u2019s a snapshot of the valuation metrics of these companies.<\/p>\n\n\n\n<p>You can also see how Divis compares with its peers based on technicals and <a href=\"https:\/\/www.tickertape.in\/stocks\/divis-laboratories-DIVI\/peers?table=forecast?ref=blog\">forecast<\/a>, on the <a href=\"https:\/\/www.tickertape.in\/stocks\/divis-laboratories-DIVI\/peers?table=valuation?ref=blog\">Peers<\/a> tab of Divis Labs stock page on Tickertape.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Share\"><span class=\"ez-toc-section\" id=\"Divis-Laboratories-share-price\"><\/span><strong>Divis Laboratories share price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As mentioned, Divis share price has zoomed 112% in the last year. Here\u2019s a chart comparing Divis Laboratories share price movements with that of Syngene International, and Dishman Carbogen Amics from 28<sup>th<\/sup> Aug 2019 to 25<sup>th<\/sup> Aug 2020. You can<a href=\"https:\/\/www.tickertape.in\/stocks\/divis-laboratories-DIVI\/peers?table=valuation?ref=blog\"> compare Divi\u2019s Labs with any other stock that you wish here<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"423\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-2-1024x423.jpg\" alt=\"\" class=\"wp-image-1799\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-2-1024x423.jpg 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-2-300x124.jpg 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-2-768x317.jpg 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-2-1536x634.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Financials\"><span class=\"ez-toc-section\" id=\"Last-4-yrs-financials-of-Divis-Labs\"><\/span><strong>Last 4 yrs\u2019 financials of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Below is the comparison of Income Statement, Balance Sheet, and Cash Flow Statements of the drug firm for the last 4 yrs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Income\"><span class=\"ez-toc-section\" id=\"Income-statement-of-Divis-Laboratories-Ltd\"><\/span><strong>Income statement of <\/strong><strong>Divis Laboratories Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"515\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-1-1024x515.jpg\" alt=\"\" class=\"wp-image-1800\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-1-1024x515.jpg 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-1-300x151.jpg 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-1-768x386.jpg 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-1-1536x773.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The above table shows that Divis Labs\u2019 revenue has been steadily rising except in the FY2018. However, its net income and <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/\">EBITDA<\/a> have remained more or less stable for FY2017, FY2019, and FY2020, and not shown significant change, again except for 2018. This may be because the drug firm incurred Rs 1,800 cr capital expenditure in that year.<\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/iOTg1\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<p>The above chart shows that Divis has been generating revenue and net income lower than that of industry average over the last 5 yrs. But if you wish to do an in-depth analysis of Divis Labs, you can check out the<a href=\"https:\/\/www.tickertape.in\/stocks\/divis-laboratories-DIVI\/financials?period=quarter&amp;statement=income&amp;view=growth\"> quarterly financials feature of Tickertape, which allows you to analyse the short-term performance of the stock<\/a>. Here\u2019s how you can get there:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"927\" height=\"545\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/Screenshot-2020-08-17-at-12.25.53.png\" alt=\"\" class=\"wp-image-1797\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/Screenshot-2020-08-17-at-12.25.53.png 927w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/Screenshot-2020-08-17-at-12.25.53-300x176.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/Screenshot-2020-08-17-at-12.25.53-768x452.png 768w\" sizes=\"(max-width: 927px) 100vw, 927px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Balance\"><span class=\"ez-toc-section\" id=\"Balance-sheet-of-Divis-Labs\"><\/span><strong>Balance sheet of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"563\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-3-1024x563.jpg\" alt=\"\" class=\"wp-image-1802\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-3-1024x563.jpg 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-3-300x165.jpg 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-3-768x422.jpg 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-3-1536x845.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><br><\/td><td><strong>2017<\/strong><\/td><td><strong>2018<\/strong><\/td><td><strong>2019<\/strong><\/td><td><strong>2020<\/strong><\/td><\/tr><tr><td>Debt-to-equity ratio<\/td><td>0.15<\/td><td>0.14<\/td><td>0.15<\/td><td>0.17<\/td><\/tr><tr><td>Current ratio<\/td><td>6.08<\/td><td>6.94<\/td><td>5.50<\/td><td>5.05<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Generally, a high debt-to-equity ratio shows that the company is highly leveraged and can be risky for investors, depending on the industry it belongs to. It also means that creditors have a relatively higher stake in a company\u2019 assets than the <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a>.<\/p>\n\n\n\n<p>Thankfully, Divis Labs\u2019 debt-to-equity ratio is less than 1. This means that the company is not heavily financed by debt and that the shareholders have a higher stake on its assets than the creditors. Further, the current ratio has mostly been declining over the years. Still, Divis Labs has ample current assets to meet its current liabilities, which is a good indicator.<\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/1YmU3\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<p>When compared to the 5-yrs\u2019 industry average of the debt-to-equity ratio of 14.23%, Divis Laboratories has exceeded the metric with an impressive 0.95%. On the other hand, the company defeats the industry average of current ratio just slightly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Cashflow\"><span class=\"ez-toc-section\" id=\"Cashflow-of-Divis-Labs\"><\/span><strong>Cashflow of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"290\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-4-1024x290.jpg\" alt=\"\" class=\"wp-image-1803\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-4-1024x290.jpg 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-4-300x85.jpg 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-4-768x217.jpg 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/divis-4-1536x435.jpg 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Tickertape compiles 9 yrs\u2019 financial statements for every stock. Visit<a href=\"https:\/\/www.tickertape.in\/stocks\/divis-laboratories-DIVI\/financials?ref=blog\"> Divis Labs\u2019 stock page<\/a> to view information for all the 9 yrs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Recent\"><span class=\"ez-toc-section\" id=\"Recent-developments-in-Divis-Laboratories-Ltd\"><\/span><strong>Recent developments in <\/strong><strong>Divis Laboratories Ltd<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Recently, Divis Laboratories reported impressive Q1 results for FY2021 following which the stock hit a fresh 52-week high. The drug firm, which is one of the top pharma companies in Hyderabad, reported a consolidated net profit of at Rs 492.06 cr, an 80.61% increase y-o-y. This was, however, courtesy of its robust sales, not an advantage of the pandemic. Further, its total income rose to Rs 1,747.80 cr from Rs 1,193.20 cr y-o-y and EBITDA zoomed 80.8% y-o-y.<\/p>\n\n\n\n<p>Another important point to note is about Divis capital expenditure. As per experts and analysts, Divis\u2019 major capital expenditure of Rs 1800 cr on the expansion of manufacturing facilities would be completed in FY2021 and would start reaping commercial benefits in FY2022. This would also boost earnings in the near future. But what makes this point significant one is because, in the past, the drug firm has incurred a capital expenditure only when they saw strong growth visibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Opportunities\"><span class=\"ez-toc-section\" id=\"Opportunities-for-Divis\"><\/span><strong>Opportunities for Divis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Talking of opportunities, Divis Laboratories has a situational advantage gifted by the pandemic, given most global pharma companies are looking to diversify their supply chain outside China. With ample governmental support in the form of policies and reforms and Divis\u2019 continued efforts, the drug firm may have new milestones lined up in the near future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Risks\"><span class=\"ez-toc-section\" id=\"Risks-of-Divis-Labs\"><\/span><strong>Risks of <\/strong><strong>Divis Labs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Despite all the sheen that Divis has, the drug firm is not free of risks:<\/p>\n\n\n\n<ul><li>It earns about 47% of its revenue from top-5 molecules, which signifies that the drug firm faces concentration risks<\/li><li>Even though Divis Labs stands to benefit from the situational advantage of the pandemic, it may have to resort to price discounting to overcome stiff competition from global and domestic players<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Divis Laboratories is a strong company having growth opportunities. But as an investor, it is your responsibility to do an overall-analysis of stock before making a buying or a selling decision. We are merely an informational entity who offer tools to facilitate in-depth analysis and smart investment decisions.<\/p>\n\n\n\n<p>Happy investing!<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian Pharma Industry is in the limelight and so is Divis Laboratories, a poster boy company. Here&#8217;s an analysis of the company profile, financials, prospects, and risks.<\/p>\n","protected":false},"author":27,"featured_media":1798,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1749],"tags":[],"acf":[],"modified_by":"Ayushi Mishra","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2020\/08\/Divis-lab.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/1794"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=1794"}],"version-history":[{"count":9,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions"}],"predecessor-version":[{"id":6939,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/1794\/revisions\/6939"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/1798"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=1794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=1794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=1794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}