₹11560.0
+4.17% today
· 30d +24.09%
as of 2026-11-09
Price · Daily Candles
“Divi's Laboratories' Q2 profits surge 65.5% YoY, but valuation concerns linger despite strong operational growth.”
Divi's Laboratories delivered a stellar Q2 2026 with net profit soaring 65.5% YoY to ₹902 Cr and revenue up 27.8% YoY to ₹3080 Cr, driven by an 8.42% increase in operating profit margin. However, the stock currently trades at a TTM PE of 86.59, considerably higher than its sector peers, prompting a 'stretched' valuation score of 20.
BULL CASE
+Q2 2026 net profit jumped 65.5% YoY to ₹902 Cr, showcasing strong earnings momentum.
+Quarterly revenue grew 27.8% YoY to ₹3080 Cr, with operating profit also rising 55.54% YoY.
+Operating profit margin expanded by 8.42% YoY, indicating improved efficiency.
+Divi's Labs shows strong ML growth ranks across sales (0.897), EBIT (0.836), and FCF (0.85) over various time horizons.
+The company's 'profitability' and 'performance' scores are strong at 98 and 90 respectively.
BEAR CASE
−Divi's Laboratories trades at a TTM PE of 86.59, significantly above sector peers like Sun Pharma (43.01) and Cipla (35.49).
−The stock is flagged as 'overvalued' with a -45.5% margin of safety, based on an intrinsic value of ₹4537.44 against a current price of ₹8330.0.
−The 'valuation' axis score is 'stretched' at 20, reflecting its high multiples.
−FII shareholding saw a marginal QoQ decrease of 0.09% in Q2 2026.
−The stock is trading near its 52-week high, only 2.0% away from ₹8500.0.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹3676 Cr
+35.4% YoY
NET PROFIT
₹1127 Cr
+63.57% YoY
OPM
44.03%
+7.91pp YoY
EPS
₹42.49
PE 86.59
Intrinsic value · DCF ₹5123.17 · Margin of safety -55.7% (overvalued) · FCF yield 0.07%
◇ Sector Position
Divi's Laboratories trades at a TTM PE of 86.59 and ROCE of 20.0%, significantly above peers like Sun Pharma (PE 43.01, ROCE 22.46%) and Zydus Life (PE 21.82, ROCE 25.71%).
PEERPEROCE %
DIVISLAB86.5920.0
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
74
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
100
Valuation
STRETCHED
20
Growth
STRONG
78
Profitability
HIGH
98
Technicals
NEUTRAL
68
Risk
LOW
80
Key Stats
TTM PE
86.59
P/B
13.26
52W HIGH
₹11824.0
OFF HIGH
-2.23%
DIV YIELD
0.37%
MKT CAP
₹307337 Cr
◉ Active Signals
MACDBullish198.8771
RSI(14)Bearish86.82
Near 52W HighBullish-2.23
Street Consensus
30 analysts₹7363.63
mean target
Low ₹5610.0Now ₹11560.0High ₹10200.0
⧉ Strategy Fit 🔒