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Divi's Laboratories Limited (DIVISLAB) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.9T

DS Divi's Laboratories Limited DIVISLAB · NSE
Price₹8,349
Fair Value₹1,943
Upside-76.7%
Quality69/100
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Expensive Growth
Highly profitable · 24.3% net margin
Low debt · generates free cash flow
0.42% dividend yield
Mixed vs. peers (7/14)
Wide moat 79/100
Evidence: High Range ₹1,049 – ₹3,431 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ₹2,035 to ₹1,943 (−4.5%) since Jun 24, 2026. Share price +23.3% over the past month.

A solid business, but screening 77% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹3,431). The favourable scenario is already priced in.
  • The model range is unusually wide (₹1,049 to ₹3,431). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹8,388 ₹2,700 Fair Value ₹1,943 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹2,700 – ₹8,388 · fair‑value band ₹1,049 – ₹3,431 · the ₹8,349 price screens above the ₹1,943 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Divi's Laboratories Limited (DIVISLAB) currently trades at ₹8,349, while our model-based Fair Value estimate is ₹1,943, implying the stock looks roughly 76.7% overvalued today. We read business quality at 69/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Divi's Laboratories Limited generated revenue of ₹106B at a net margin of 24.3%. Revenue grew 9.5% year over year. It earns a return on equity of 16.2%. The balance sheet holds a net cash position of ₹34.1B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹1,049 (bear case) to ₹3,431 (bull case); at ₹8,349, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -39% fair-value upside, at -77%, DIVISLAB screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹422.66 ₹738.25 ₹1,359 80
Residual Income ₹669.48 ₹884.63 ₹2,767 76
Rev-Margin DCF ₹744.04 ₹1,435 ₹2,458 74
All 26 models by family
DCF Models
FCF DCF ₹434.99 ₹667.67 ₹1,337 38
Owner Earnings ₹443.62 ₹852.94 ₹1,738 31
5Y Revenue Exit ₹744.04 ₹1,397 ₹2,605 39
5Y EBITDA Exit ₹1,114 ₹2,207 ₹4,092 41
5Y P/E Exit ₹1,247 ₹2,663 ₹4,497 38
10Y Revenue Exit ₹627.14 ₹1,340 ₹2,325 36
10Y EBITDA Exit ₹921.12 ₹2,041 ₹4,137 37
10Y P/E Exit ₹1,017 ₹2,294 ₹4,531 35
Earnings-Based
Graham-Dodd ₹657.80 ₹4,461 ₹6,252 54
Lynch FV ₹1,309 ₹1,870 ₹2,431 50
PEG = 1.0 ₹1,309 ₹1,870 ₹2,431 46
EPV ₹941.49 ₹1,085 ₹1,212 59
Dividend Discount
Gordon GGM ₹288.79 ₹630.47 ₹1,061 70
DDM Multi-Stage ₹288.79 ₹516.46 ₹657.05 61
Multiples
P/E Multiple ₹1,451 ₹1,935 ₹2,418 63
P/S Multiple ₹745.85 ₹994.47 ₹1,243 58
P/B Multiple ₹1,233 ₹1,644 ₹2,056 55
EV/EBIT ₹1,643 ₹2,148 ₹2,653 53
EV/EBITDA ₹1,392 ₹1,814 ₹2,235 54
EV/Revenue ₹824.71 ₹1,123 ₹1,421 43
Asset-Based
NCAV (Graham) ₹315.69 ₹423.02 ₹631.37 50
Growth DCF
Growth DCF ₹422.66 ₹738.25 ₹1,359 80
Rev-Margin DCF ₹744.04 ₹1,435 ₹2,458 74
Economic Profit
Residual Income ₹669.48 ₹884.63 ₹2,767 76
ROIC Compounder ₹1,141 ₹1,684 ₹2,193 72
Growth Earnings
Growth-Adj P/E ₹1,772 ₹2,532 ₹3,291 68

Widest divergence: Growth Earnings (₹2,532) versus Asset-Based (₹423.02). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹106B
Revenue growth (YoY) +9.5%
Net margin 24.3%
Return on equity 16.2%
Free cash flow ₹5.0B FY2026
P/E ratio 74.9
More key figures
Operating margin 28.8%
EPS (TTM) ₹97.04
Dividend yield 0.4%
EPS growth (YoY) +13.6%
Net cash ₹34.1B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 61 · Market factors (momentum, volatility) 78

Profitability 62
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹106B
Latest YoY
+13.2%
Avg. growth/yr (3Y)
+11.3%
Avg. growth/yr (5Y)
+9.0%
Avg. growth/yr (21Y)
+17.7%
Revenue +4.7%/yr
FY22 ₹88.0B
FY23 ₹76.7B
FY24 ₹78.0B
FY25 ₹93.3B
FY26 ₹106B
Net income −3.5%/yr
FY22 ₹29.6B
FY23 ₹18.2B
FY24 ₹16.0B
FY25 ₹21.9B
FY26 ₹25.7B

DIVISLAB screens 77% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Divi's Laboratories Limited Fair Value". https://www.fairvalue-calculator.com/stock/DIVISLAB

Peer Group

Drug Manufacturers - Specialty & Generic · 625 stocks

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.

Quality Score 69 · Top 25%
Fair Value upside −77% · Bottom 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 24% · Top 25%
Operating margin (TTM) 29% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 74.9× · Pricier than 75% of peers
P/B 11.52× · Pricier than 75% of peers
P/S (TTM) 18.28× · Pricier than 75% of peers
P/FCF 4.1× · Pricier than median
EV/EBITDA 55.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 9
FUTURE 48 · sector 20
PAST 65 · sector 23
HEALTH 100 · sector 97
DIVIDEND 8 · sector 35

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%
Aurobindo Pharma Limited AUROPHARMA ₹1,548 ₹1,340 -13%

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Frequently asked questions

Is Divi's Laboratories Limited (DIVISLAB) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹1,943 versus a price of ₹8,349, about −77% (overvalued).
What is the fair value of DIVISLAB?
Our model-based fair value for Divi's Laboratories Limited is ₹1,943 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹8,349.
What is the quality score of DIVISLAB?
Divi's Laboratories Limited has a Quality Score of 69/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Divi's Laboratories Limited (DIVISLAB)?
Divi's Laboratories Limited reported trailing-twelve-month revenue of about ₹106B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of DIVISLAB?
The net profit margin of Divi's Laboratories Limited is about 24.3%, meaning it keeps roughly 24.3% of revenue as net income. Based on the latest reported figures.
Does Divi's Laboratories Limited pay a dividend?
Divi's Laboratories Limited currently shows a dividend yield of about 0.45% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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