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Diffusion Engineers Limited
(DIFFNKG)
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Rating:71Outperform
Price Target:
₹492.00
▲(24.31% Upside)
Action:Upgraded
Date:08/07/26
The score is driven primarily by solid fundamentals (strong growth and low leverage) but held back by weak cash generation/negative free cash flow and FY2026 gross-margin volatility. Technicals are supportive with strong uptrend momentum, while valuation is a headwind due to a higher P/E and low dividend yield.
Positive Factors
Revenue Growth
Sustained double-digit revenue growth demonstrates persistent demand and market traction for the firm's products or services. This secular top-line expansion supports scaling operating leverage, enables reinvestment in capacity and R&D, and provides a durable foundation for profit expansion over the next several quarters.
Negative Factors
Weak Cash Conversion
Low operating cash flow relative to net income points to working-capital strains or timing differences that weaken earnings quality. Over time, poor cash conversion can limit free-cash flexibility, increase reliance on accrual accounting, and constrain the company's ability to self-fund growth or return capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double-digit revenue growth demonstrates persistent demand and market traction for the firm's products or services. This secular top-line expansion supports scaling operating leverage, enables reinvestment in capacity and R&D, and provides a durable foundation for profit expansion over the next several quarters.
Read all positive factors
Diffusion Engineers Limited (DIFFNKG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹14.31B
Dividend Yield0.39%
Average Volume (3M)18.14K
Price to Earnings (P/E)28.5
Beta (1Y)1.18
Revenue Growth21.31%
EPS Growth40.34%
CountryIN
Employees665
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)13.46
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 develops and supplies a variety of industrial products, including welding materials, components designed for abrasion resistance, and robust engineering apparatus. These goods are distributed to numerous industries with...
How the Company Makes Money
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Diffusion Engineers Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
44
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.07B | 3.35B | 2.78B | 2.53B | 2.03B |
| Gross Profit | 777.86M | 1.12B | 939.65M | 720.40M | 595.36M |
| EBITDA | 740.28M | 470.77M | 470.45M | 343.55M | 271.02M |
| Net Income | 503.23M | 359.09M | 306.59M | 221.64M | 170.24M |
Balance Sheet | |||||
| Total Assets | 5.10B | 4.44B | 2.76B | 2.30B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 975.63M | 1.27B | 78.13M | 45.29M | 30.61M |
| Total Debt | 286.24M | 232.14M | 344.35M | 480.91M | 245.95M |
| Total Liabilities | 1.05B | 751.19M | 845.67M | 881.77M | 687.10M |
| Stockholders Equity | 4.05B | 3.69B | 1.91B | 1.42B | 1.21B |
Cash Flow | |||||
| Free Cash Flow | -126.38M | -62.66M | 69.49M | -139.43M | -2.90M |
| Operating Cash Flow | 282.27M | 86.20M | 390.97M | -47.37M | 110.51M |
| Investing Cash Flow | -480.53M | -180.96M | -385.61M | -133.73M | -152.02M |
| Financing Cash Flow | -96.68M | 1.29B | 27.47M | 195.78M | 25.33M |
Diffusion Engineers Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹14.31B | 28.50 | ― | 0.38% | 21.31% | 40.34% | |
69 Neutral | ₹148.07B | 39.77 | ― | 0.38% | 5.04% | -10.39% | |
59 Neutral | ₹34.88B | 29.15 | ― | 0.16% | 12.79% | -7.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹148.63B | 51.92 | ― | 0.51% | 4.54% | 1.65% | |
52 Neutral | ₹38.74B | 62.91 | ― | 0.25% | 10.17% | 8.27% | |
52 Neutral | ₹76.81B | 95.48 | ― | ― | 39.60% | 44.52% |
* General Sector Average
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Diffusion Engineers Limited
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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.