- Divi’s Labs 4Q net income greatly surpassed estimates, with an impressive income of 5.38 billion rupees, which marks a 68% increase year over year. The initial estimate was 4.5 billion rupees.
- The company’s revenue also saw an increase, coming in at 23.03 billion rupees, a rise of 18% year over year. The prior estimate was 20.96 billion rupees.
- Total costs increased by 7.7% year over year, ticking up to 16.7 billion rupees.
- Raw material costs made up a significant portion of these totals, raising by 11% year over year to 8.98 billion rupees.
- Employee benefits expenses also rose, seeing a 15% year over year increase to 2.97 billion rupees. The previous estimate was 2.69 billion rupees.
- Divi’s Labs reported other income of 790 million rupees, a 20% increase year over year.
- The company announced a dividend per share of 30 rupees.
- The re-appointment of Murali K. Divi as Managing Director for another 5 years, from October 10, 2024, has also been sanctioned.
- Current stock recommendations include 6 buys, 4 holds, and 15 sells.
- These comparisons to past results are based on values reported by Divi’s Labs from company’s original disclosures.
A look at Divi’s Laboratories Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Divi’s Laboratories Ltd. shows a promising long-term outlook as per the Smartkarma Smart Scores analysis. With a strong score of 5 in Resilience, the company demonstrates a robust ability to adapt and withstand market volatility, which is a key indicator of stability and long-term performance. Furthermore, the company’s high score of 4 in Dividend showcases a commitment to rewarding shareholders, indicating a solid financial standing and potential for consistent returns over time.
In terms of growth potential, Divi’s Laboratories received a score of 3, suggesting decent growth prospects in the foreseeable future. Although the Value and Momentum scores stand at 2 and 3 respectively, indicating moderate performance in these areas, the overall positive outlook based on the Smart Scores highlights Divi’s Laboratories as a company with steady dividends, resilience, and growth opportunities in the pharmaceutical industry.
(Summary: Divi’s Laboratories Ltd. is a pharmaceutical company specializing in the manufacturing of generic drugs and intermediates, along with offering contract research services to other pharmaceutical firms.)
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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