Divi’s Laboratories Ltd is a large-cap pharmaceutical company with a market valuation of 95,166.50 crore. A leading producer of active pharmaceutical ingredients, Divi exports top products to more than 95 countries. As one of the leading API manufacturers in the world, Divi’s produces generic APIs, nutraceutical ingredients, and provides custom API synthesis. The company also holds the distinction of being one of the top three API producers worldwide and one of the top API companies in Hyderabad. The shares of Divi’s Laboratories are one of the best examples of stocks that have made investors millionaires over a period of 19 years.
Divi’s Laboratories Share Price History
Divi’s Laboratories Ltd. on NSE on Monday. closed on shares of 3,578.00 per piece, down 0.26% from previous close 3,587.50. The stock price has recorded a multibagger return and an all-time high of 39,655.56%, which has climbed from 9 March 13, 2003 at the current price level. it would be worth it now 3.97 crore if a person had invested 1 lakh in the shares of Divi’s Laboratories 19 years ago. In the last five years the share price climbed from Rs. 711.95 as on September 1, 2017, at current market price, resulting in a multibagger return of 402.56% and an estimated CAGR of 38.15%.
In the last 1 year, the stock has fallen 29.90% and on YTD basis, the stock has fallen 23.07% so far in 2022. above return of 3.97 crores in 19 years would be possible only if the bonus shares or stock splits, which lead to price action, had not happened. But Divi’s Laboratories Ltd. As per BSE records, the company declared bonus shares twice, once on 30 July 2009 and again on 23 September 2015, both in the ratio of 1:1. Let us now calculate the return by taking into account the bonus shares and Rs. 1 lakh investment.
when the share price was 9 March 13, 2003, an investment of 1 lakh would have acquired a total of 11,111 shares. The company announced a 1:1 bonus on July 30, 2009, increasing your total share count to (11,111+11,111=22,222). On September 23, 2015, the company once again announced a 1:1 bonus share, bringing the total number of shares held by you (22,222+22,222=44,444). The return on your entire investment would have been reached 15.90 crores (44,444 shares x current market price.) based on today’s stock price. 3,578).
Divi’s Laboratories Q1FY23 Results
In Q1FY23, the firm earned Rs. recorded a net profit of 702 crores, above Rs. 557 crore in Q1FY22. This represents an annualized profit of 26%. From 1,960.6 crores in the same quarter last year, the company’s revenue from operations increased by almost 15% 2,254 crores. In Q1 FY23, Profit Before Tax (PBT) up 4.5% to 851 crore 814 crore in Q1FY22. Company’s total income increased by 17% year-on-year 2,342 crore in Q1FY23 1,996 crore in Q1FY22. The total expenses of the company in Q1FY23 were 1,491 crore, above 1,182 crore in Q1FY22. The company’s EPS jumped to 26.44 in Q1FY23 20.99 in Q1FY22.
Should you buy shares of Divi’s Laboratories?
Research analysts at broking firm Sharekhan said in a note that “In its Annual Report for FY 2012, Divis Laboratories (Divis) has mentioned the challenges faced in FY 2012 due to the COVID pandemic, which has affected the entire markets. business has been affected. At the same time, the crisis was exacerbated by the escalation of geopolitical conflict and several other challenges in the form of strained trade relations, a sharp rise in inflation and unprecedented volatility in commodity costs. While the pandemic has posed challenges, it has also accelerated significant changes in the healthcare ecosystem, making it more adaptable and innovative to withstand any sudden changes. Divis has been able to capitalize on the opportunities that have emerged based on its strong customer engagement and capabilities. In addition, the div’s is better prepared to handle rising demand, constant market volatility and uncertain economic environment. The company plans to focus on a continuous process of innovation and green chemistry implementation to strengthen its overall position.”
He further added that “the division in its annual report has noted transient challenges in the form of demand uncertainties and cost pressures, while the long-term growth prospects remain intact and could accelerate growth. On installed capacities, backward integration, quality The focus, and the benefits of scale coupled with major capacity expansion plans, are positives that can support growth. However, given the cost headwinds, including higher raw material costs, freight costs and power costs, the near-term In the CMP, the stock trades at 35.3x/30.7x its FY23E/FY24E EPS valuations respectively, while there are clearly near-term concerns, long-term growth levers remain intact, so we remain unchanged maintain a buy recommendation on the stock with. 4450.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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