⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DIVISLAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | DIVISLAB | Market Cap | 1,64,319 Cr. | Current Price | 6,198 ₹ | High / Low | 7,078 ₹ |
| Stock P/E | 65.4 | Book Value | 578 ₹ | Dividend Yield | 0.48 % | ROCE | 20.6 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 6,293 ₹ | DMA 200 | 6,230 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | -0.50 % | PAT Qtr | 696 Cr. | PAT Prev Qtr | 557 Cr. |
| RSI | 49.4 | MACD | -95.0 | Volume | 4,69,840 | Avg Vol 1Wk | 3,54,381 |
| Low price | 4,942 ₹ | High price | 7,078 ₹ | PEG Ratio | -7.10 | Debt to equity | 0.01 |
| 52w Index | 58.8 % | Qtr Profit Var | 34.4 % | EPS | 94.7 ₹ | Industry PE | 28.2 |
📊 Divi’s Laboratories (DIVISLAB) shows strong fundamentals and profit growth but faces high valuation and weak short-term technical momentum. It is a moderately good candidate for swing trading with cautious positioning.
✅ Optimal Entry Price: 6,150–6,200 ₹ (near 200 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 6,350–6,400 ₹ (short-term resistance zone around 50 DMA) or if RSI moves above 55.
Positive
- 💡 Strong ROCE (20.6%) and ROE (15.6%) indicate efficient capital usage.
- 📈 EPS of 94.7 ₹ supports earnings strength.
- 🏦 Debt-to-equity ratio of 0.01 shows an almost debt-free balance sheet.
- 📊 Quarterly PAT growth from 557 Cr. to 696 Cr. (+34.4%) highlights robust performance.
- 📈 Increase in FII holdings (+0.69%) reflects foreign investor confidence.
Limitation
- ⚠️ High P/E (65.4) compared to industry average (28.2), suggesting overvaluation.
- 📉 MACD (-95.0) signals weak momentum despite strong fundamentals.
- 🔻 Dividend yield of 0.48% is modest, reducing passive income appeal.
- 📊 PEG ratio (-7.10) suggests poor valuation relative to growth.
Company Negative News
- 📉 Decline in DII holdings (-0.50%) shows reduced domestic institutional confidence.
- 📊 High valuation may limit upside potential in the short term.
Company Positive News
- 📈 Strong quarterly profit growth (+34.4%) highlights operational improvement.
- 📊 Increase in FII holdings (+0.69%) shows growing foreign investor trust.
Industry
- 🏭 Industry P/E at 28.2 is much lower than Divi’s 65.4, highlighting premium valuation.
- 📈 Pharma sector remains resilient, supported by global demand for APIs and specialty chemicals.
Conclusion
🔎 Divi’s Laboratories is fundamentally strong but technically weak in the short term. Swing traders may enter near 6,150–6,200 ₹ and exit near 6,350–6,400 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.