{"id":14917,"date":"2023-03-15T07:28:27","date_gmt":"2023-03-15T07:28:27","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=14917"},"modified":"2025-04-03T17:17:39","modified_gmt":"2025-04-03T11:47:39","slug":"divis-laboratories-share-price","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/divis-laboratories-share-price\/","title":{"rendered":"Divis Laboratories Share Price: All You Need To Know"},"content":{"rendered":"
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From meeting the needs of its people to supplying affordable medicines worldwide during challenging times, the Indian pharmaceutical industry has stood the test of time. In FY22, the Indian pharmaceutical industry was valued at $49 billion, growing at a rate of 9% compared to FY21. In this blog, we will analyze Divis Laboratories share price, one of India’s top-performing export-oriented leading generic drug manufacturers.<\/p>\n\n\n\n

In the last 5 and 10 years, Divis Laboratories share price has increased at a CAGR<\/a> of 24% and 19%, respectively. Meaning \u20b9 1,00,000 invested in 2012 would have grown around six times to reach \u20b9 5,69,468. Let’s look closer at the growth potential of Divis Laboratories share price over the long term.<\/p>\n\n\n\n

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Divis Laboratories Company Journey<\/h2>\n\n\n\n

Divi Murali established Divi’s Laboratories on October 12 1990, as Divi’s Research Centre (DRC), with research and development as their prime focus. Between 1991 and 93, the company successfully developed and commercialized processes for intermediates and bulk actives and supplies to manufacturing majors.<\/p>\n\n\n\n

 Following its initial success, DRC changed its name to Divi’s Laboratories Ltd in 1994 to reflect its growing areas of interest, including entering the manufacturing processes of generic APIs. It is how the journey of Divi’s Laboratories Ltd. to become one of the top 3 manufacturers of Active Pharmaceutical Ingredients (APIs) in the world started with the highest level of compliance.<\/p>\n\n\n\n

In 1995, the company started operations from its first manufacturing facility at Choutuppal near Hyderabad, and in 2002, the second plant in Chippada near Vishakapatnam began operations.<\/p>\n\n\n\n

Over the years, Divis Laboratories has established itself as a reliable supplier of generic APIs to big pharma companies worldwide. APIs are substances in medicine that give beneficial health effects to the medication.<\/p>\n\n\n\n

In 2003, Divis Laboratories went for IPO and listed its stocks on National Stock Exchange<\/a> (NSE<\/a>) and Bombay Stock Exchange<\/a> (BSE<\/a>).<\/p>\n\n\n\n

Divis Laboratories Business Operations<\/h2>\n\n\n\n

Divi’s Laboratories operates across three countries with a 16,500-strong workforce and 400 scientists working in three R&D centers across functions.<\/p>\n\n\n\n

The company currently operates two manufacturing units. A third unit is coming up in Kakinada, Andhra Pradesh, delivering 1000 tonnes of non-potent to highly potent APIs to major pharmaceutical companies worldwide. The combined total reaction capacity of both units is over 14,500m3, making it one of the largest API manufacturing facilities in the world.<\/p>\n\n\n\n

Both facilities manufacture Generic APIs, Nutraceutical ingredients, and custom synthesis for big pharma. Divi’s is the global<\/a> leader in over ten generic APIs, supplying 1000s of tonnes to customers in 95 countries annually.<\/p>\n\n\n\n

Generic APIs are used in generic drugs and are the same as original APIs but slightly differ in formulation, manufacturing process, excipients, taste, and color. And nutraceutical ingredients are vitamins, minerals, prebiotics, and probiotics used in food supplements.<\/p>\n\n\n\n

As mentioned earlier, Divi’s Laboratories is an export-oriented company, meaning most of its revenue is earned from foreign countries. For instance, in FY22, Divis made 44% from the USA, 33% from Europe, 10% from India, 9% from the rest of Asia, and 4% from the rest of the world.  <\/p>\n\n\n\n

<\/a>Divis Laboratories Management Team<\/h3>\n\n\n\n

Dr Murali K. Divi is the founder and Managing Director at Divi’s Laboratories, overseeing the technical and financial operations of the company. He holds a PhD degree in Pharmaceutical Sciences from Kakatiya University, India.<\/p>\n\n\n\n

Dr Kiran K. Divi is the Whole-time Director and CEO and has been with Divis for two decades. He overlooks the company’s corporate functions and operations at manufacturing facilities. Before joining Divis, he gained extensive knowledge of the US generics market and held a postgraduate degree in Pharmacy from JNTU, India.<\/p>\n\n\n\n

Mr NV Ramana is the Executive Director and has been with Divis for 25 years. However, he overlooks the company’s strategic planning, sales and marketing, custom manufacturing, and nutraceutical ingredients development.<\/p>\n\n\n\n

Mr Madhusudan Rao Divi is the Whole-time Director (Projects) and overlooks all aspects of manufacturing, engineering, sustainability, and environmental management.<\/p>\n\n\n\n

Ms Nilima Prasad Divi is the Whole-time Director (Commercials), overseeing the company’s material sourcing and procurement, corporate finance, and investor relations.<\/p>\n\n\n\n

Divis Laboratories Company Analysis<\/h2>\n\n\n\n

Revenue<\/h3>\n\n\n\n

In FY22, the company recorded 31% year-on-year growth in revenue to \u20b98,879 crores, driven by solid export volumes to the US. During the year, the company more than doubled its export revenue from the USA to \u20b93,832 crores, from \u20b91,5868 crores in FY21, an increase of over 142%. <\/p>\n\n\n\n

And in the last five years, the company posted 18.27% CAGR growth in total consolidated revenue. However, in Q3FY23, the company reported a weak set of numbers, with consolidated revenue falling by ~32% year-on-year to \u20b91,708 crores. <\/p>\n\n\n\n

EBITDA<\/h3>\n\n\n\n

In FY22, EBITDA came in at \u20b93,987.7 crores, a 38% growth year-on-year. The EBITDA margin for the year stands at 44%.<\/strong><\/p>\n\n\n\n

What is EBITDA Margin?<\/h3>\n\n\n\n

EBITDA stands for Earnings Before Interest Depreciation and Amortization, and the metric helps compare the company’s short-term financial and operational efficiency. <\/p>\n\n\n\n

While in Q3FY23, due to weak sales numbers and input costs pressure, EBITDA tanked 63% year-on-year to \u20b9408 crores, and EBITDA margin slipped to the lowest ever at 23.9%. <\/p>\n\n\n\n

Profit after Tax (PAT)<\/h3>\n\n\n\n

In FY22, profit after tax<\/a> (PAT) grew by 51% year-on-year to \u20b92,948.5 crores, and the net profit margin stood at 33%. While in Q3FY23, PAT nosedived 66% year-on-year to \u20b9306 crores.<\/p>\n\n\n\n

Divis Labs Key Financial Ratios<\/h3>\n\n\n\n

The key financial ratios in FY22 are:<\/p>\n\n\n\n