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Today's prices ask more of Divi's Laboratories than of Sun Pharma.
At current prices, buyers of Divi's Laboratories are assuming about 31% growth against 8% in its own record; for Sun Pharma it is 7% against 16%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: Divi's Laboratories on estimate withheld; Sun Pharma on discounted cash flow.
- Size: Sun Pharma is worth about 1.5 times Divi's Laboratories on the stock market.
- Record: Divi's Laboratories has grown revenue faster: Divi's Laboratories compounded at about 13% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026).
- What to watch: custom synthesis contracts at Divi's Laboratories; specialty growth at Sun Pharma.
| Divi's Laboratories | Sun Pharma | |
|---|---|---|
| Price | ₹11,442 | ₹1,880 |
| Market cap | ₹3.03L Cr | ₹4.51L Cr |
| P/E | 90.2 | 41.1 |
| P/B | 18.09 | 5.40 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Discounted cash flow |
01Two businesses
The ingredient maker behind global brands
Divi's Laboratories was founded in Hyderabad in 1990 by Dr Murali Divi. It makes active pharmaceutical ingredients (APIs) — the chemical heart of a medicine — for generic drugmakers, and runs custom synthesis for large global pharmaceutical companies, producing ingredients for their patented drugs.
From generics to specialty medicines
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. It sells generics in the US, emerging markets and Europe, and owns Taro Pharmaceutical, a dermatology-focused generics maker it took fully private in 2024.
02The records side by side
Divi's Laboratories has grown revenue faster: Divi's Laboratories compounded at about 13% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026). By revenue, Sun Pharma is about 5.5 times the size of Divi's Laboratories. Divi's Laboratories kept 24.3% of revenue as net profit in FY2026; Sun Pharma kept 19.7% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Divi's Laboratories · Sun Pharma.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Custom synthesis contractsLong-term work for global innovators is the highest-value part of the business.
- Generic API volumesPrices for generic APIs follow global supply, including from China.
- Specialty growthThe specialty portfolio is the main reason Sun earns a higher multiple than most Indian pharma companies. Its growth rate drives the valuation.
- The India businessBranded prescriptions in India are steady, cash-rich and grow with the domestic market.
05What could go wrong
- Chinese competitionCheaper Chinese APIs can pressure prices.
- Customer concentrationA few large contracts matter a lot.
- US FDA complianceWarning letters or import alerts at a manufacturing site can block US sales from that plant for years.
- Trial and patent riskA failed trial or an early generic challenge can wipe out expected specialty revenue.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Divi's Laboratories or Sun Pharma better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Divi's Laboratories trades at 90.2 times earnings and 18.09 times book value, and Sun Pharma at 41.1 times earnings and 5.40 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Divi's Laboratories and Sun Pharma?
Divi's Laboratories was founded in Hyderabad in 1990 by Dr Murali Divi. Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India.
Are Divi's Laboratories and Sun Pharma valued the same way?
No. Divi's Laboratories is valued on estimate withheld and Sun Pharma on discounted cash flow, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Divi's Laboratories and Sun Pharma?
Worked backwards from the share price, Divi's Laboratories needs about 31% growth and Sun Pharma about 7% growth, against 8% and 16% in their own records.