Divi's Laboratories Ltd
NSE:DIVISLAB
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Divi's Laboratories Ltd
NSE:DIVISLAB
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Intrinsic Value
The intrinsic value of Divi's Laboratories Ltd (DIVISLAB) under the Base Case is 6 239.59 INR per share.
Compared with the current market price of 10 267.5 INR, the stock appears
Overvalued by 39% .
The intrinsic value is calculated using the DCF method. The model assumes Divi's Laboratories' revenue grows about 18% a year over the next five years, more than twice its 8.7% pace over the last five. Repeating that past revenue growth would put the estimate at about INR 4,304.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Divi's Laboratories Does
Divi’s Laboratories makes active pharmaceutical ingredients, or APIs, and pharmaceutical intermediates for other drugmakers. In simple terms, it is a behind-the-scenes supplier that helps pharmaceutical companies produce finished medicines. It also does custom synthesis work, where it develops and manufactures specific molecules for customers that need a reliable outside production partner.
- Headquarters
- India IN
- Employees
- 10 542
- IPO date
- Mar 12, 2003
Divi's Laboratories has a narrow economic moat
Replacing Divi’s in an established drug manufacturing program takes testing, process transfers and, where required, regulatory approval, making customers reluctant to move solely for a lower price. Its large production batches, refined manufacturing methods and in-house raw materials also help keep costs competitive in selected drug ingredients.
Read the full moat analysis
Revenue & Expenses Breakdown
Divi's Laboratories Ltd
Earnings Waterfall
Divi's Laboratories Ltd
The intrinsic value for Divi's Laboratories Ltd (DIVISLAB) under the Base Case is 6 239.59 INR.
Compared with the current market price of 10 267.5 INR, the stock appears Overvalued by 39% .
