Diffusion Engineers Limited (IN:DIFFNKG)
:DIFFNKG
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Diffusion Engineers Limited
(DIFFNKG)
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Rating:66Neutral
Price Target:
₹339.00
▲(0.91% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by solid growth and a conservative balance sheet, offset by weak cash conversion/negative free cash flow and notable margin volatility. Technicals are moderately supportive with mixed momentum, while valuation is reasonable but not strongly compelling given the low dividend yield.
Positive Factors
Revenue Growth Momentum
Sustained double‑digit top‑line growth indicates durable demand for wear‑resistant and refurbishment services. Over 2–6 months this supports scaling of fixed‑cost recovery, expanding customer share in heavy industries and underpins longer‑term profitability if growth remains consistent.
Negative Factors
Weak Cash Conversion / Negative FCF
Poor cash conversion and consecutive negative free cash flow constrain internal funding for growth, dividends or debt reduction. Reliance on working capital or external liquidity raises execution risk and limits flexibility for sustained investments over the coming months if not corrected.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Sustained double‑digit top‑line growth indicates durable demand for wear‑resistant and refurbishment services. Over 2–6 months this supports scaling of fixed‑cost recovery, expanding customer share in heavy industries and underpins longer‑term profitability if growth remains consistent.
Read all positive factors
Diffusion Engineers Limited (DIFFNKG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹12.20B
Dividend Yield0.46%
Average Volume (3M)18.14K
Price to Earnings (P/E)14.6
Beta (1Y)1.26
Revenue Growth21.31%
EPS Growth40.34%
CountryIN
Employees665
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)11.36
Shares Outstanding37,426,258
10 Day Avg. Volume8,593
30 Day Avg. Volume18,137
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)2.30
Price to Sales (P/S)2.29
P/FCF Ratio-73.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Diffusion Engineers Limited Business Overview & Revenue Model
Company Description
Diffusion Engineers Limited manufactures and sells welding consumables, wear plates and parts, and heavy engineering equipment for various industries in India and internationally. The company provides specialized and customized repairs and recondi...
How the Company Makes Money
null...
Diffusion Engineers Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.46B | 4.07B | 3.35B | 2.78B | 2.53B | 2.03B |
| Gross Profit | 1.07B | 777.86M | 1.12B | 939.65M | 720.40M | 595.36M |
| EBITDA | 626.11M | 571.43M | 470.77M | 470.45M | 343.55M | 271.02M |
| Net Income | 425.13M | 503.23M | 359.09M | 306.59M | 221.64M | 170.24M |
Balance Sheet | ||||||
| Total Assets | 4.66B | 5.10B | 4.44B | 2.76B | 2.30B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 975.63M | 1.27B | 78.13M | 45.29M | 30.61M |
| Total Debt | 220.69M | 286.24M | 232.14M | 344.35M | 480.91M | 245.95M |
| Total Liabilities | 795.52M | 1.05B | 751.19M | 845.67M | 881.77M | 687.10M |
| Stockholders Equity | 3.86B | 4.05B | 3.69B | 1.91B | 1.42B | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | -21.86M | -126.38M | -62.66M | 69.49M | -139.43M | -2.90M |
| Operating Cash Flow | 137.76M | 282.27M | 86.20M | 390.97M | -47.37M | 110.51M |
| Investing Cash Flow | -177.27M | -480.53M | -180.96M | -385.61M | -133.73M | -152.02M |
| Financing Cash Flow | -76.09M | -96.68M | 1.29B | 27.47M | 195.78M | 25.33M |
Diffusion Engineers Limited Technical Analysis
Positive
335.95
Price Trends
289.55
Positive
284.82
Positive
316.75
Positive
Market Momentum
8.90
Negative
62.17
Neutral
67.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIFFNKG, the sentiment is Positive. The current price of 335.95 is above the 20-day moving average (MA) of 312.45, above the 50-day MA of 289.55, and above the 200-day MA of 316.75, indicating a bullish trend. The MACD of 8.90 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DIFFNKG.
Diffusion Engineers Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹17.61B | 53.19 | ― | 0.30% | 11.80% | 2.82% | |
66 Neutral | ₹12.20B | 14.56 | ― | 0.46% | 21.31% | 40.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ₹142.16B | -0.46 | ― | 0.51% | 4.54% | 1.65% | |
57 Neutral | ₹8.35B | 41.93 | ― | ― | -4.86% | -18.14% | |
55 Neutral | ₹10.84B | 47.85 | ― | 0.36% | -3.51% | -6.24% |
* Industrials Sector Average
IN:DIFFNKG
Diffusion Engineers Limited
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Diffusion Engineers Limited Corporate Events
Diffusion Engineers Confirms SEBI-Compliant Demat Processing for March Quarter
Apr 7, 2026
Diffusion Engineers Limited has reported compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 March 2026, submitting a certificate from its registrar and transfer agent, Bigshare S...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.