Please refer to important disclosures at the end of this report
1
Divi's Laboratories Limited (Divi’s) is engaged in manufacturing and sale of active
pharmaceutical ingredients (APIs) and Intermediates. Divi’s quarterl
y
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
f
27.43% for the last 3 years. The company has been maintaining a health
y
dividend payout of 29%. Hence Buy.
BUY
CMP `1,339
Stock Info
Sector
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
Pharmaceuticals
Market Cap (
`
cr) 35,558
52 Week High / Low 1380/918
Avg. Daily Volume 41,315
Face Value (
`
)2
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
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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