Please refer to important disclosures at the end of this report
Divi's Laboratories Limited (Divi’s) is engaged in manufacturing and sale of active
pharmaceutical ingredients (APIs) and Intermediates. Divi’s quarterl
performance witnessed strong growth across segments with a sharp
improvement in margins owing to a better product mix. The segment registered
stellar growth and margin expansion that indicates possible market share gain
and pricing power with the company. Despite of being in the CRAMS space the
company is a virtually debt free and cash rich company. Its EBITDA margins are
among the best in the industry. The management has guided for 15% revenue
growth for FY17 and FY18 as the new capacity at Kakinada and Vizag would
only get commissioned from FY19. The company has good consistent profit
growth of 20.56% over 5 years and has a good return on equity (ROE) o
27.43% for the last 3 years. The company has been maintaining a health
dividend payout of 29%. Hence Buy.
CMP `1,339
Stock Info
Beta 0.5
Bloomberg Code DIVI IN
Shareholding Pattern (%)
Promoters 52.0
MF / Banks / Indian Fls 14.2
FII / NRIs / OCBs 19.8
Indian Public / Others 14.0
Abs. (%) 3m 1yr 3yr
Sensex 7.8 11.7 44.9
Divi's Lab. 20.4 25.2 166.9
Market Cap (
cr) 35,558
52 Week High / Low 1380/918
Avg. Daily Volume 41,315
Face Value (
BSE Sensex 28,599
Nifty 8,780
Reuters Code DIVI.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Divi’s Laboratories
Others | Pharmaceuticals
September 17, 2016
Divi’s Laboratories | Pharmaceuticals
September 17, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.