Divi's Laboratories Limited (DIVISLAB.NS) stock analysis

In our weekly check, Divi's Laboratories Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About Divi's Laboratories Limited

Divi's Laboratories Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as DIVISLAB.NS.

What our checks show for DIVISLAB.NS

Red flags

• The net margin fell by 7.6 points over 5 years, to 26%: the company keeps less of each sale as profit.
• The gross margin fell by 15 points, to 49.8%: costs are rising faster than prices.
• The price is 81.2 times earnings (P/E): the market already pays for a lot of future growth.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Free cash flow is only 4.4% of revenue.
• Free cash flow covers the dividend only 0.6 times.
• The stock has fallen as much as 60% from a peak. Would you have held through that?

Strengths

• Debt is low: 0x equity.
• Operating profit covers interest 134 times over.
• Analysts expect earnings per share to grow about 21.2% a year over the next years.
• Analysts expect revenue to grow about 18.1% a year over the next years.
• Analysts expect the net margin to improve by 2.1 points from today's 26%.
• Earnings per share grew 17.1% a year over the last 3 years.

Next earnings report: 2026-11-09

Similar companies

4507.T · TORNTPHARM.NS · 4523.T · SUNPHARMA.NS · LAURUSLABS.NS · LUPIN.NS

Questions

What grade does Divi's Laboratories Limited (DIVISLAB.NS) have?

In our weekly check, Divi's Laboratories Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of DIVISLAB.NS stock?

This week's biggest flags for Divi's Laboratories Limited: Margins falling, Gross margin falling, High P/E. In total 7 of 25 checks show a warning or a red flag.

What does Divi's Laboratories Limited do?

Divi's Laboratories Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as DIVISLAB.NS.

When does Divi's Laboratories Limited report earnings next?

The next earnings report is expected on 2026-11-09. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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