Introduction to Divi’s Laboratories Limited

Divi’s Laboratories Limited, commonly known as Divi’s Labs, is a renowned pharmaceutical company that specializes in the manufacture of Active Pharmaceutical Ingredients (APIs) and intermediates. Established in 1990, the company has built a robust reputation in both the Indian and global markets. In this blog post, we’ll delve into the details about its Initial Public Offering (IPO), product portfolio, financial health, and stock performance over the years.

IPO Launch Details

The Initial Public Offering (IPO) of Divi’s Laboratories Limited was launched on February 8, 2003. The shares were offered at an issue price of ₹140 per share. The IPO received an overwhelming response from investors, marking a significant milestone in the company’s growth journey.

Current Share Price

As of the latest trading session, the current share price of Divi’s Laboratories Limited stands at ₹4,200.00 (as of October 2023). The stock has shown impressive growth, reflecting the company’s strong financial performance and market position.

Product Range

Divi’s Laboratories Limited is renowned for its high-quality APIs and intermediates. The company operates in two primary business segments:

• Generic APIs: These are off-patent APIs that are sold in bulk to generic drug manufacturers worldwide.
• Custom Synthesis: Divi’s Labs offers custom synthesis services for global pharmaceutical companies, providing tailor-made products as per client specifications.

Financial Performance

Divi’s Laboratories Limited has consistently demonstrated strong financial performance. Let’s take a closer look at its financial metrics:

• Revenue: In the fiscal year 2022-2023, the company reported a revenue of ₹8,153 crore.
• Net Profit: The net profit for the same period stood at ₹2,300 crore.
• Earnings per Share (EPS): Divi’s Labs reported an EPS of ₹58.27 for FY 2022-2023.
• Dividend: The company announced a dividend of ₹30 per share in the same fiscal year.

Investment Analysis: ₹10,000 Invested 5 Years Ago

If you had invested ₹10,000 in Divi’s Laboratories Limited 5 years ago, let’s calculate what it could be worth today:

In October 2018, the share price of Divi’s Labs was approximately ₹1,300 per share. With ₹10,000, you could have purchased around 7.69 shares (₹10,000 / ₹1,300).

As of October 2023, the share price is ₹4,200.00. Therefore, the value of your 7.69 shares today would be:

7.69 shares * ₹4,200.00 = ₹32,298.00

Your ₹10,000 investment would have grown to approximately ₹32,298.00 over the last 5 years, providing an impressive return on investment.

Conclusion

Divi’s Laboratories Limited has established itself as a leader in the pharmaceutical industry, backed by strong financials and a broad product range. Its IPO history, robust market performance, and impressive returns on investment highlight its growth potential. Whether you are an existing shareholder or considering an investment, Divi’s Labs continues to be a compelling choice in the stock market.