Divis Laboratories Ltd

Incorporated in 1990, Divis Laboratories Ltd manufactures and exports API’s, Intermediates and Nutraceutical ingredients.

Key Business

Generic APIs

Custom Synthesis

Nutraceutical

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Consolidated total income for the quarter: Rs. 1,950 crores
• Profit before tax: Rs. 489 crores
• Profit after tax: Rs. 358 crores
• Exports accounted for around 87%
• Product mix for generics to custom synthesis: 54% and 46%
• Nutraceutical business amounted to Rs. 153 crores for the quarter
• Cash on book: Rs. 3,913 crores
• Receivables: Rs. 1,792 crores
• Inventories: Rs. 3,201 crores
• Capital work in progress: Rs. 712 crores
• Kakinada project spent Rs. 458 crores during the financial year
• Capacity utilization for this quarter: around 80%.

Final Outlook

Positives

• Foreign Institutions have increased holdings from 17.25% to 17.99% in Dec 2024 quarter
• Netprofit is up for the last 3 quarters, 430.0 Cr → 589.0 Cr (in ₹), with an average increase of 14.6% per quarter
• In the last 1 year, DIVISLAB has outperformed top 5 stocks with highest market-cap in Pharmaceuticals
• Promoters holdings remained unchanged at 51.89% of holdings in Dec 2024 quarter
• Promoters holdings remained unchanged at 51.89% of holdings in Dec 2024 quarter
• In the last 3 years, Torrent Pharmaceuticals Ltd has given 132.5% return, outperforming this stock by 101.0%

Negatives

• Retail Investor have decreased holdings from 9.80% to 9.59% in Dec 2024 quarter
• In the last 1 month, DIVISLAB stock has moved down by -1.2%
• Revenue is down for the last 2 quarters, 2.44K Cr → 2.40K Cr (in ₹), with an average decrease of 1.8% per quarter
• Mutual Funds have decreased holdings from 11.92% to 11.89% in Dec 2024 quarter

I would be giving Buy recommendation for this stock as long term trends are favourable.