|
Quantamental
Equity Research on DIVIS LABORATORIES LTD | Release: 16 Dec 2018 22:57:10
UTC+05:30 | Reporting Currency: INR | Trading Currency: INR |
Exchange:NSE/BSE NSE CODE:DIVISLAB and BSE CODE:532488 |
Last Close: |
INR 1491.4 |
Fair Value: |
INR 1508.6 |
Est. Price by Mar 19: |
INR 1705.5 |
Market Capitalization (INR
Crs): |
39591.98 |
Industry: |
Pharmaceuticals |
Rating: |
BUY |
Upside: |
14% |
Company Profile |
|
|
Divis Laboratories is engaged in the manufacture of Active
Pharmaceutical ingredients (APIs), Intermediates and Nutraceutical
ingredients with predominance in exports. Company through its custom
synthesis business, supports innovator pharma companies for their patented
products business right for clinical trials to launch as well as late life
cycle management. |
Growth Per Share |
|
|
Particulars |
1-Year |
3-Year |
5-Year |
|
Revenue % |
-5% |
52% |
113% |
|
EBIT % |
-12% |
14% |
54% |
|
Earnings % |
-17% |
3% |
42% |
|
Book Value
% |
10% |
67% |
133% |
|
Stock Total
Return % |
81% |
25% |
121% |
|
|
Share holding
pattern |
Particulars |
%age |
|
(A) Promoter
& Promoter Group |
52.02 |
|
(B) FII/FPI |
17.52 |
|
(C)
DII/Insurance Companies |
16.79 |
|
(D) Public holding < 2 lakhs of cap. |
7.06 |
|
(E) Others |
6.61 |
|
Grand Total |
100.00 |
|
|
Fundamentals
(Historical and Estimated) |
Particulars |
Mar-10 |
Mar-11 |
Mar-12 |
Mar-13 |
Mar-14 |
Mar-15 |
Mar-16 |
Mar-17 |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
Price |
347 |
349 |
404 |
520 |
679 |
920 |
1032 |
637 |
1151 |
1706 |
1951 |
2172 |
2353 |
2498 |
|
Return on
Equity |
22% |
24% |
25% |
24% |
26% |
24% |
25% |
19% |
15% |
16% |
16% |
16% |
15% |
14% |
|
Price to
Earning |
53.4 |
42.5 |
39.2 |
45.2 |
45.5 |
57.7 |
49.3 |
24.1 |
35.1 |
43.0 |
43.0 |
43.0 |
43.0 |
43.0 |
|
EVTI |
18.7 |
13.4 |
11.0 |
12.5 |
13.7 |
15.4 |
14.2 |
5.8 |
7.3 |
9.4 |
9.4 |
9.4 |
9.3 |
9.3 |
|
EVTIFM |
53.4 |
42.5 |
39.2 |
45.2 |
45.5 |
57.7 |
49.3 |
24.1 |
35.1 |
43.0 |
43.0 |
43.0 |
43.0 |
43.0 |
|
Price to Book
Value |
11.9 |
10.1 |
9.9 |
10.8 |
11.9 |
13.7 |
12.6 |
4.7 |
5.1 |
6.7 |
6.8 |
6.8 |
6.5 |
6.2 |
|
Debt to
Equity |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Dividend Yield |
0% |
1% |
1% |
1% |
1% |
1% |
0% |
1% |
1% |
1% |
1% |
1% |
1% |
1% |
|
Cash Flow to
Firm |
10% |
7% |
5% |
5% |
7% |
7% |
2% |
7% |
3% |
2% |
2% |
3% |
3% |
4% |
|
|
Detailed Estimates |
Title |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
Sales |
3,815.94 |
4,450.19 |
5,060.58 |
5,607.66 |
6,050.96 |
6,353.51 |
|
EBITDA |
1,364.09 |
1,763.48 |
2,005.35 |
2,222.14 |
2,397.81 |
2,517.70 |
|
EBIT |
1,221.67 |
1,597.39 |
1,824.69 |
2,030.89 |
2,200.90 |
2,336.24 |
|
PBT |
1,219.36 |
1,595.08 |
1,824.69 |
2,030.89 |
2,200.90 |
2,336.24 |
|
NPAT |
869.58 |
1,052.91 |
1,204.48 |
1,340.59 |
1,452.81 |
1,542.16 |
|
Price to
Earning |
35.13 |
43.00 |
43.00 |
43.00 |
43.00 |
43.00 |
|
Price to Book
Value |
5.13 |
6.74 |
6.84 |
6.75 |
6.52 |
6.21 |
|
Debt to
Equity |
0.01 |
- |
- |
- |
- |
- |
|
Return on
Equity |
0.15 |
0.16 |
0.16 |
0.16 |
0.15 |
0.14 |
|
Enterprise Value to Total Income (EVTI) |
7.32 |
9.41 |
9.44 |
9.43 |
9.35 |
9.31 |
|
Enterprise Value to Total Income to Firm Margin(EVTIFM) |
37.66 |
47.37 |
47.34 |
47.06 |
46.47 |
45.81 |
|
Price or Est.
Share Prices |
1,150.66 |
1,705.50 |
1,951.05 |
2,171.55 |
2,353.35 |
2,498.10 |
|
|
DISCOUNTED CASH
FLOW |
Title |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
PBT |
1,595.08 |
1,824.69 |
2,030.89 |
2,200.90 |
2,336.24 |
|
Interest |
2.31 |
- |
- |
- |
- |
|
Depreciation |
166.09 |
180.66 |
191.26 |
196.92 |
181.46 |
|
Cash Flow
Before Tax |
1,763.48 |
2,005.35 |
2,222.14 |
2,397.81 |
2,517.70 |
|
Tax Rate |
33.99 |
33.99 |
33.99 |
33.99 |
33.99 |
|
Cash Flow
After Tax |
1,164.07 |
1,323.73 |
1,466.84 |
1,582.80 |
1,661.93 |
|
Terminal Cash
Flow |
- |
48,371.55 |
|
Total Cash
Flow |
1,164.07 |
1,323.73 |
1,466.84 |
1,582.80 |
50,033.48 |
|
Present Value of
Cash Flow |
40,048.45 |
|
Debt |
- |
|
Value of Equity |
40,048.45 |
|
Fair Value Per
Share |
1,508.60 |
|
|
Equity |
|
|
|
|
39,592 |
|
Debt |
|
|
|
|
63 |
|
|
Beta |
Take from Reuters |
|
|
-0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Free Rate |
Prevailing Yield in India |
|
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Risk Premium |
Assuming 8.82% premium
for Equity Investments |
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Paid |
|
|
|
|
2 |
|
Tax Benefit |
|
|
|
|
1 |
|
Interest Net of Tax |
|
|
|
|
2 |
|
Debt |
|
|
|
|
63 |
|
Cost of Debt |
|
|
|
|
3% |
|
Cost of Equity |
|
|
|
|
7% |
|
Debt Weight |
|
|
|
|
0% |
|
Equity Weight |
|
|
|
|
100% |
|
WACC |
|
|
|
|
7% |
|
|
Cash Flow of Mar-23 E |
|
|
|
|
1,661.93 |
|
Growth |
|
|
|
|
3.6% |
|
Present Value of Terminal
Cashflow |
|
|
|
|
48,371.55 |
|
|
Peer Comparision |
# |
Name |
CMP
Rs. |
Mar
Cap Rs.Cr. |
B.V.
Rs. |
Annualized
ROE % |
ROCE
% |
Latest
EVTI |
Latest
EVTIFM |
CMP
/ BV |
P/E |
Debt
/ Eq |
Div
Yld % |
Growth
Rate R % |
SGR
% |
Ann
Total Income |
Unpledged
Prom Hold % |
PQEIOI |
QoQ
Sales % |
Qtr
Sales Var % |
QoQ
Profits % |
Qtr
Profit Var % |
Graham's
Number Rs. |
1 |
Lupin |
843.85 |
38,164 |
298.72 |
10.15 |
10.21 |
2.61 |
129.08 |
2.82 |
31.00 |
0.53 |
0.59 |
1.02 |
0.78 |
16,728 |
47.00 |
1,092 |
2.47 |
-0.02 |
31.18 |
-41.54 |
- |
2 |
Divi's Lab. |
1,491.40 |
39,592 |
237.46 |
34.93 |
21.37 |
6.90 |
27.90 |
6.28 |
34.43 |
0.01 |
0.67 |
24.27 |
31.34 |
5,460 |
52.02 |
125 |
29.11 |
44.35 |
49.40 |
92.31 |
481.09 |
3 |
Jubilant Life |
735.95 |
11,724 |
288.71 |
26.08 |
15.26 |
1.63 |
14.79 |
2.55 |
15.02 |
0.85 |
0.41 |
24.18 |
21.89 |
9,093 |
50.68 |
57 |
9.18 |
38.23 |
3.91 |
64.05 |
570.37 |
4 |
Vinati Organics |
1,675.40 |
8,610 |
174.75 |
42.54 |
27.52 |
8.05 |
37.37 |
9.59 |
40.44 |
0.02 |
0.27 |
35.70 |
44.19 |
1,054 |
74.01 |
159 |
-4.51 |
57.34 |
1.21 |
123.09 |
403.46 |
5 |
Granules India |
87.80 |
2,232 |
55.66 |
23.86 |
11.92 |
1.23 |
14.70 |
1.58 |
13.33 |
0.75 |
1.14 |
19.30 |
15.78 |
2,392 |
17.80 |
52 |
28.16 |
47.97 |
16.33 |
49.38 |
90.91 |
6 |
Suven Life Scie. |
232.45 |
2,959 |
72.55 |
9.84 |
25.09 |
6.74 |
50.93 |
3.20 |
19.22 |
0.03 |
0.65 |
8.65 |
31.66 |
384 |
60.00 |
259 |
-53.29 |
-16.23 |
-53.63 |
-43.28 |
140.42 |
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