Divgi Torqtransfer Systems
Divgi Torqtransfer Systems
AutomobilesKey Fundamentals
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Key Insights
Strengths
3- Company is almost debt free.
- Company is expected to give good quarter
- Company has been maintaining a healthy dividend payout of 24.6%
Weaknesses
2- Stock is trading at 5.72 times its book value
- Company has a low return on equity of 6.26% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
Divgi Torqtransfer Systems trades at a market cap of Rs 3,063 crore with a PE of 66.7x, reflecting premium valuation against a backdrop of accelerating TTM sales growth of 61% and profit growth of 93%. The company is nearly debt-free but carries a modest 3-year ROE of just 6%, presenting a mixed fundamental picture.
- TTM sales growth of 61% indicates strong revenue momentum and potential market share gains in the drivetrain/transfer case segment
- TTM profit growth of 93% demonstrates significant operating leverage as revenues scale up
- Company is almost debt-free, providing financial flexibility for capacity expansion without dilution or interest burden
- 5-year compounded sales CAGR of 14% shows consistent top-line growth trajectory over a longer horizon
- Healthy dividend payout of 24.6% signals management confidence in cash flow sustainability despite being a growth-stage company
- Stock CAGR of 63% over the past 1 year reflects strong market recognition of improving fundamentals
- Expected to deliver a good upcoming quarter, suggesting near-term earnings visibility remains intact
- PE ratio of 66.7x is significantly elevated relative to broader market and auto-component peers, leaving little margin of safety
- 3-year ROE of only 6% indicates subpar capital efficiency despite the debt-free balance sheet
- 3-year compounded profit CAGR of -3% shows that recent profit surge is a reversal from prior weakness rather than a sustained trend
- Price-to-book of 4.92x is high for a company generating single-digit returns on equity, implying stretched valuations relative to asset base
- 3-year compounded sales CAGR of only 9% suggests the 61% TTM growth may not be sustainable at a normalized level
- 5-year compounded profit CAGR of just 4% highlights historically weak earnings growth prior to the recent acceleration
- 3-year stock CAGR of only 3% versus 63% in the last year suggests most gains are very recent and could be vulnerable to mean reversion
- Dividend yield of 0.25% offers negligible income cushion for investors if stock price corrects from current levels
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Five-year AWD order win Jun 19
Secured a five-year order to supply 6,000 AWD units annually to an OEM, starting Q1 FY28. Provides medium-term revenue visibility in the all-wheel-drive segment.
- US subsidiary for business development Jun 25
Incorporated Divgi Transmission Technologies And Systems Inc in Delaware on June 04, 2026. The wholly-owned subsidiary will focus on business development and sales in the US market.
- Analyst meets in June-July Jun 29
Multiple analyst and institutional investor meets scheduled — June 11 (virtual, Choice Equities), June 20 in Pune, and July 2 at Shirwal plant. Indicates active investor engagement.
- FY25 results resubmitted to NSE Jun 25
Resubmitted FY25 financial results on July 11, 2025, correcting PAT discrepancies. Statutory auditors issued an unmodified opinion, indicating no material concerns.
- CIO appointment Jun 10
Appointed Kishor Hole as Chief Information Officer on June 10, 2026, reporting to the Managing Director. Signals investment in IT and digital capabilities.
TL;DR: Divgi TorqTransfer is in expansion mode — winning a multi-year AWD supply contract and setting up a US subsidiary for sales growth. No visible headwinds in recent news flow, and the resubmitted FY25 results received a clean audit opinion. The trend is constructive, with order wins and geographic expansion pointing to improving medium-term fundamentals.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 57 | 69 | 63 | 65 | 54 | 54 | 53 | 58 | 72 | 83 | 91 | 108 | 137 |
| Expenses | 44 | 54 | 50 | 52 | 45 | 43 | 44 | 50 | 58 | 66 | 73 | 86 | 100 |
| Operating Profit | 13 | 14 | 13 | 13 | 9 | 11 | 9 | 9 | 14 | 17 | 18 | 22 | 37 |
| OPM % | 23% | 21% | 20% | 20% | 16% | 21% | 16% | 15% | 20% | 20% | 20% | 20% | 27% |
| Other Income | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 6 | 5 | 5 | 6 | 6 | 5 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 4 | 5 | 5 | 6 | 6 | 6 | 6 | 7 | 7 | 7 | 8 | 8 | 8 |
| PBT | 14 | 14 | 13 | 12 | 8 | 11 | 7 | 7 | 12 | 15 | 16 | 20 | 34 |
| Tax % | 26% | 26% | 26% | 25% | 26% | 26% | 26% | 27% | 26% | 27% | 25% | 23% | 25% |
| Net Profit | 10 | 11 | 9 | 9 | 6 | 8 | 5 | 5 | 9 | 11 | 12 | 15 | 25 |
| EPS in Rs | 3.41 | 3.51 | 3.06 | 3.01 | 1.95 | 2.56 | 1.71 | 1.75 | 2.92 | 3.52 | 3.85 | 5.06 | 8.25 |
Profit & Loss
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 159 | 187 | 159 | 187 | 234 | 271 | 253 | 219 | 353 | 418 |
| Expenses | 115 | 133 | 122 | 135 | 168 | 196 | 200 | 181 | 283 | 325 |
| Operating Profit | 44 | 54 | 37 | 52 | 66 | 75 | 53 | 38 | 70 | 93 |
| OPM % | 28% | 29% | 23% | 28% | 28% | 28% | 21% | 17% | 20% | 22% |
| Other Income | 5 | 9 | 12 | 8 | 8 | 8 | 20 | 21 | 22 | 22 |
| Interest | 6 | 1 | 5 | 0 | 0 | 0 | 1 | 1 | 1 | 0 |
| Depreciation | 4 | 6 | 6 | 8 | 11 | 13 | 19 | 25 | 29 | 30 |
| PBT | 40 | 56 | 38 | 53 | 62 | 69 | 54 | 33 | 63 | 84 |
| Tax % | 36% | 28% | 26% | 28% | 26% | 26% | 26% | 26% | 25% | — |
| Net Profit | 25 | 40 | 28 | 38 | 46 | 51 | 40 | 24 | 47 | 63 |
| EPS in Rs | 469 | 747 | 466 | 553 | 16.76 | 16.73 | 12.99 | 7.98 | 15.35 | 20.68 |
| Div. Payout % | 0% | 0% | 0% | 0% | 20% | 20% | 20% | 33% | 21% | — |
Balance Sheet
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 5 | 5 | 6 | 7 | 14 | 15 | 15 | 15 | 15 |
| Reserves | 91 | 227 | 204 | 289 | 326 | 536 | 565 | 581 | 620 |
| Borrowings | 49 | 2 | 51 | 1 | 0 | 3 | 2 | 1 | 2 |
| Other Liabilities | 40 | 45 | 46 | 69 | 68 | 93 | 63 | 66 | 98 |
| Total Liabilities | 185 | 279 | 306 | 366 | 408 | 646 | 644 | 664 | 735 |
| Fixed Assets | 72 | 78 | 89 | 105 | 112 | 117 | 227 | 255 | 259 |
| CWIP | 2 | 9 | 6 | 6 | 28 | 93 | 26 | 2 | 19 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 111 | 191 | 211 | 254 | 268 | 437 | 392 | 406 | 458 |
| Total Assets | 185 | 279 | 306 | 366 | 408 | 646 | 644 | 664 | 735 |
Cash Flow
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | 38 | 27 | 51 | 41 | 32 | 35 | 41 |
| Investing | — | — | -24 | -25 | -51 | -213 | 6 | -43 | -16 |
| Financing | — | — | -6 | -3 | -3 | 160 | -12 | -9 | -9 |
| Net Cash Flow | — | — | 8 | 0 | -3 | -13 | 27 | -16 | 16 |
| Free Cash Flow | — | — | 25 | 1 | 11 | -28 | -45 | 9 | -3 |
| CFO/OP | — | — | 134 | 75 | 101 | 78 | 88 | 112 | 79 |
Ratios
| Particulars | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 85 | 74 | 54 | 107 | 82 | 99 | 91 | 92 | 82 |
| Inventory Days | 139 | 108 | 146 | 161 | 129 | 119 | 133 | 173 | 167 |
| Days Payable | 162 | 112 | 145 | 217 | 155 | 151 | 129 | 167 | 160 |
| Cash Conversion Cycle | 62 | 70 | 54 | 51 | 57 | 66 | 95 | 99 | 88 |
| Working Capital Days | 59 | 42 | -72 | 64 | 52 | 48 | 91 | 95 | 73 |
| ROCE % | — | 30% | 17% | 19% | 20% | 15% | 10% | 6% | 10% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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50 extracted metrics + investor summaries across FY18–FY26.
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Company Information
Incorporated in 1964, Divgi Torqtransfer System Ltd manufactures Auto Components and Parts[1]
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