Divi's Laboratories Limited (DIVISLAB) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Divi's Laboratories Limited stock ₹1,567, price ₹10,321, that is 84.8% below the price, quality 63 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Our calculation puts a fair price 85% below what the stock costs today.
Quality 63/100
Highly profitable · 26.1% net margin (TTM)
Low debt
Generates free cash flow
Wide moat83/100
Last quarter vs. a year ago: revenue +28%, profit +66%.
Expensive Growth(revenue 5y +9.0 %/yr in INR)
0.3% dividend yield · Token dividend
Mixed vs. peers(7/13)
Fair value ₹1,567 · Strongly overvalued (−84.8%)
Thin data
Extreme value
Risks from the AI analysis
🚩Chinese rivals could undercut generic API prices🚩US/EU regulatory shifts could hit export concentration🚩Patent expiries on key custom synthesis products
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range ₹2,689 – ₹10,321 · fair‑value band ₹789.27 – ₹2,512 · the ₹10,321 price screens above the ₹1,567 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Divi's Laboratories Limited engages in the manufacture and sale of generic active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals in India, North America, Asia, Europe, and internationally.
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The company also undertakes custom synthesis contract manufacturing services of APIs and intermediates; and supplies a range of carotenoids, such as beta carotene, astaxanthin, lycopene, and canthaxanthin, as well as lutein and vitamins used in the food, beverage, dietary supplement, pet food, and feed industries.
It also exports its products. The company was formerly known as Divi's Research Center and changed its name to Divi's Laboratories Limited in 1994. Divi's Laboratories Limited was incorporated in 1990 and is based in Hyderabad, India.
Stock analysis
Divi's Laboratories Limited (DIVISLAB) currently trades at ₹10,321, while our model-based Fair Value estimate is ₹1,567, 85% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹2,107 per share, and 0 of the 26 models we run sit above the ₹10,321 price.
Bear case: the Asset-Based group reads lowest at ₹294.72, and 26 of the 26 models stay below the price. Data coverage for this calculation is low.
Scenario range: ₹789.27 (bear) to ₹2,512 (bull), the price of ₹10,321 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Healthcare sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Divi's Laboratories Limited reported revenue of ₹106B in FY2026 versus ₹88.0B in FY2022, a compound +4.7%/yr. Reported net income was ₹25.7B in FY2026, compounding −3.5%/yr from FY2022.
Key figures
Market cap ₹2.7T (≈ $29.2B) Large · P/E ratio 93.6 · P/S ratio 24.4 · EPS (TTM) ₹110.21 · Dividend yield 0.3% · Net margin 26.1% · Return on equity 16.2% · Return on assets (EBIT) 16.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 83 out of 100 (medium confidence).
What moves the price
The share trades at its 52-week high and 78% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −6% fair-value upside, at −85%, DIVISLAB screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (₹294.72 to ₹3,545). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear₹789.27Fair Value ₹1,567Bull₹2,512
Price ₹10,321 · Downside -84.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹48.35 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+13.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.0%
Start year 2021 (pandemic). Over 10 years: +10.9% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.7%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+5.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.3%
Dividend (yield on the price)0.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.3% vs 9.2%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.38% → 28%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
more than +80 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+16.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +12.0% a year for the forecasts.
AI conclusion: High margins and a clean balance sheet signal a moderate moat, yet typical generic pharma commoditization risks limit differentiation versus peers.
Main risk: Subsidized Chinese bulk drug producers might engage in predatory pricing or margin dumping on generic APIs, squeezing Divi's margins and volumes in its generics segment.
Bull case: Divi's could capitalize on China+1 sourcing by global pharma firms, expand its custom synthesis pipeline with new complex molecules and peptides, and leverage its clean regulatory record and scale to win more long-term contracts from originators.
Bear case: Intensifying Chinese price pressure, key patent expiries and rising regulatory scrutiny in major export markets could erode Divi's generics margins and reduce custom synthesis revenues, limiting growth and capacity utilization.
Divi’s Laboratories has seen custom synthesis rise to 60 percent of revenue in the latest quarter, fueling stronger growth than the generics business alone. Our models currently see the stock as overvalued given the scale of recent capacity investments. Will the shift toward specialized contracts generate enough sustained margin gains to justify the premium, or will broader API pricing pressures limit the upside?
Compare Divi's Laboratories Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 548 stocks
Beats the industry median on 6/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Above median
Fair Value upside−84.8% · Bottom 25%
Profitability
Return on equity (12 months)16.2% · Top 25%
Return on assets12.8% · Top 25%
Net margin (12 months)26.1% · Top 25%
Operating margin (12 months)36.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)27.8% · Top 25%
Dividend yield (12 months)0.3% · Bottom 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (12 months)93.6× · Priciest 25%
P/B16.34× · Priciest 25%
P/S (12 months)24.39× · Priciest 25%
EV/EBITDA68.2× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 14
FUTURE (revenue growth)100· sector 25
PAST (return on equity)65· sector 29
HEALTH (low debt)100· sector 96
DIVIDEND (yield)6· sector 32
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Divi's Laboratories Limited (DIVISLAB) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of ₹1,567 versus a price of ₹10,321, about 85% lower (overvalued).
What is the fair value of DIVISLAB?
Our model-based fair value for Divi's Laboratories Limited is ₹1,567 (as of Nov 1, 2026), built from audited fundamentals. The current price: ₹10,321.
What is the quality score of DIVISLAB?
Divi's Laboratories Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Divi's Laboratories Limited (DIVISLAB)?
Our model-based price target is the fair value of ₹1,567 (as of Nov 1, 2026) from 26 valuation models. Cautious scenario ₹789.27, optimistic scenario ₹2,512. It is a calculation from audited fundamentals, not an analyst target.
What is the Divi's Laboratories Limited stock forecast for 2026?
Our models put fair value at ₹1,567, about 85% lower versus a price of ₹10,321 (overvalued). Cautious scenario ₹789.27, optimistic scenario ₹2,512. The calculation is refreshed regularly with new filings.
What is the revenue of Divi's Laboratories Limited (DIVISLAB)?
Divi's Laboratories Limited reported trailing-twelve-month revenue of about ₹112B (latest available figure, as of Nov 1, 2026).
Does Divi's Laboratories Limited pay a dividend?
Divi's Laboratories Limited currently shows a dividend yield of 0.29% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Divi's Laboratories Limited (DIVISLAB)?
For today's price to be fair in a discounted-cash-flow model, Divi's Laboratories Limited would have to grow free cash flow by more than 80 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.0 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of DIVISLAB use?
Our models discount Divi's Laboratories Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.23, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Divi's Laboratories Limited that is more than 80 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Divi's Laboratories Limited (DIVISLAB) delivered so far?
Over the past 5 years revenue at Divi's Laboratories Limited grew +9.0 % a year. The price currently implies more than 80 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Divi's Laboratories Limited (DIVISLAB) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Divi's Laboratories Limited (more than 80 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Divi's Laboratories Limited (DIVISLAB)?
The free-cash-flow yield on the price is 0.18 %: that much free cash flow Divi's Laboratories Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Divi's Laboratories Limited (DIVISLAB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Divi's Laboratories Limited it is ₹1,567 per share (as of Nov 1, 2026), against a price of ₹10,321. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Divi's Laboratories Limited stock overvalued or undervalued in 2026?
As of Nov 1, 2026, DIVISLAB trades above its calculated fair value: price ₹10,321, fair value ₹1,567, a gap of about −85% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DIVISLAB?
No. The price is what the market pays today (₹10,321); the fair value is what the company's own numbers justify (₹1,567). For Divi's Laboratories Limited the two are ₹8,754 per share apart. That gap is exactly why we show both numbers side by side.
How much is Divi's Laboratories Limited worth?
The market values Divi's Laboratories Limited at about ₹2.7T (market capitalisation, as of Nov 1, 2026). Per share that is ₹10,321; our models calculate a fair value of ₹1,567 per share.
What do the bullish and bearish scenarios say about DIVISLAB?
Our models span a range for Divi's Laboratories Limited: cautious scenario ₹789.27, base ₹1,567, optimistic ₹2,512 per share (as of Nov 1, 2026, price ₹10,321). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DIVISLAB?
Divi's Laboratories Limited trades at a price-to-earnings ratio of 93.6 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,567 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 40.3. Other multiples: P/B 16.3, P/S 24.4, EV/EBITDA 68.2.
How solid is the balance sheet of Divi's Laboratories Limited (DIVISLAB)?
Balance-sheet figures for Divi's Laboratories Limited (as of Nov 1, 2026): return on equity 16.2%. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is DIVISLAB from its 52-week high?
Divi's Laboratories Limited trades at ₹10,321, at its 52-week high of ₹10,321 and 78% above the low of ₹5,797 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,567 is for.
Which stocks are comparable to Divi's Laboratories Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Divi's Laboratories Limited stock attractive at the current price?
The data as of Nov 1, 2026: price ₹10,321, calculated fair value ₹1,567 (−85%), Quality Score 63/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DIVISLAB calculated?
We run Divi's Laboratories Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,567, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Divi's Laboratories Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Divi's Laboratories Limited (DIVISLAB)?
The closing price on Nov 6, 2026 was ₹10,321. Our model-based fair value is ₹1,567, about 85% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Divi's Laboratories Limited right now?
The price sits above even our optimistic bull case (₹2,512). The favourable scenario is already priced in. The model range is unusually wide (₹789.27 to ₹2,512). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Divi's Laboratories Limited (DIVISLAB) come from?
Earnings per share at Divi's Laboratories Limited grew +8.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +10.9 %, EBIT margin −2.6 %, tax rate −0.5 %, residual (interest, one-offs) +1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Divi's Laboratories Limited
How large is the market capitalisation of Divi's Laboratories Limited (DIVISLAB)?
The market capitalisation of Divi's Laboratories Limited is ₹2.7T (≈ $29.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Divi's Laboratories Limited (DIVISLAB)?
The price-to-sales ratio of Divi's Laboratories Limited is 24.4 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Divi's Laboratories Limited (DIVISLAB)?
Earnings per share at Divi's Laboratories Limited are ₹110.21 (price ÷ EPS = P/E 93.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Divi's Laboratories Limited (DIVISLAB)?
The dividend yield of Divi's Laboratories Limited is 0.3% (payout 27.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Divi's Laboratories Limited (DIVISLAB)?
The net margin of Divi's Laboratories Limited is 26.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Divi's Laboratories Limited (DIVISLAB)?
The return on equity (ROE) of Divi's Laboratories Limited is 16.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Divi's Laboratories Limited (DIVISLAB)?
On an EBIT basis the return on assets of Divi's Laboratories Limited is 16.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Divi's Laboratories Limited (DIVISLAB)?
The operating margin of Divi's Laboratories Limited is 36.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Divi's Laboratories Limited (DIVISLAB)?
Revenue at Divi's Laboratories Limited is growing +27.8% versus a year earlier (3y avg +11.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Divi's Laboratories Limited (DIVISLAB)?
Earnings per share at Divi's Laboratories Limited are growing +65.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Divi's Laboratories Limited (DIVISLAB) hold?
Divi's Laboratories Limited holds more cash than debt, ₹34.1B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Thin data
Nov 1, 2026