Suggestion to buy shares of Divi’s Lab

According to the report, Divi’s lab performance and business reflected upward growth. They have an objective to intensify their offerings in the API sector.

Additionally, the plan includes adding about 16 more molecules in the segment. The approval and development process is done. Also, the introduction of adding new molecules aims at lowering the cost and efficiency of technology.

Consequently, this attracts more investors to the lab. Hence, it would increase the profitability of the business.

According to their performance, they might earn 38 percent earning in the FY20-23. This is a result of increased efficiency in CS and generics.

Furthermore, the key points of Divi’s lab include the introduction of new products, efficient manufacturing, and business prospects. The company in future will plan to launch new projects.

The financial leverage of the company is low. The company’s strength lies in its chemistry skills.

In addition, The company has a plan to increase the existing product range along with new products.

The share price of Divis Laboratories on 1500 hours was Rs 3474. It was down by 1.60% or 55.70 points.

Divis Laboratories provides API which is active pharmaceutical ingredients. It started its operation in 1990. The founder of the company is Murali Divi. It is located in Hyderabad.

Further, the income of the company in December 2020 was Rs 1720.76 Crore.

According to the valuation, the forward earnings are 36x 12M.

As of December 2020, the public holding in the company is 16.7 percent. Adding, the stake of 62.8 percent by hold by promoters.

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