Divgi TorqTransfer Systems Ltd. (DIVGIITTS) AI Stock Analysis

• Market Cap: ₹17.99B
• Dividend Yield: 0.44%
• Average Volume (3M): 725.00
• Price to Earnings (P/E): 59.4
• Beta (1Y): 1.14
• Revenue Growth: 12.30%
• EPS Growth: -6.54%
• Country: IN
• Employees: 246
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 3.50
• Shares Outstanding: 30,582,928
• 10 Day Avg. Volume: 400
• 30 Day Avg. Volume: 725
• PEG Ratio: -1.46
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 6.28
• P/FCF Ratio: 157.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹674.00 ▲(9.06% Upside)

Divgi TorqTransfer Systems Ltd. has a solid financial foundation with strong profitability and a robust balance sheet, which are significant strengths. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The low dividend yield offers limited income potential. These factors combined result in a moderate overall stock score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against market fluctuations and supporting future growth.

Profitability

Consistent profitability with strong margins indicates efficient operations and cost management, supporting long-term financial health and competitive positioning.

Revenue Model

Long-term contracts with major OEMs provide a steady income stream, enhancing revenue stability and supporting strategic growth initiatives.

Negative Factors

Revenue Decline

Fluctuating revenue growth and recent declines may indicate market volatility or competitive pressures, potentially impacting long-term growth prospects.

Free Cash Flow Volatility

Volatile free cash flow suggests potential challenges in capital management, which could strain resources and affect future investment capabilities.

Earnings Decline

A significant decline in earnings per share growth indicates potential operational challenges or market pressures, which could affect investor confidence and future profitability.

Divgi TorqTransfer Systems Ltd. Business Overview & Revenue Model

Company Description

Divgi TorqTransfer Systems Limited designs, develops, manufactures, and supplies engineered, turnkey solutions, and components to automotive OEMs in India, the United States, China, Korea, Russia, and internationally. It manufactures and supplies various products under the categories of torque transfer systems, which include four wheel-drive and all-wheel-drive products; synchronizer systems for manual transmissions and DCT; and components for torque transfer and synchronizer systems in manual transmission, DCT, and EVs. The company also offers transmission systems for EVs; DCT systems; and rear wheel drive manual transmissions. It serves customers in the automotive industry, including passenger vehicles, utility vehicles, and commercial vehicles. The company was incorporated in 1964 and is based in Pune, India. Divgi TorqTransfer Systems Limited is a subsidiary of Divgi Holdings Private Limited.

How the Company Makes Money

Divgi TorqTransfer Systems Ltd. generates revenue primarily through the sale of its automotive components to original equipment manufacturers (OEMs) and Tier-1 suppliers in the automotive industry. The company’s revenue model is driven by long-term contracts with major automotive manufacturers, providing a steady stream of income. Key revenue streams include the sale of torque transfer systems, custom engineering services, and aftermarket parts. Additionally, significant partnerships with leading automotive companies contribute to its earnings, as these collaborations often lead to increased production volumes and innovative product development, enhancing overall profitability.

Divgi TorqTransfer Systems Ltd. Financial Statement Overview

Summary

Divgi TorqTransfer Systems Ltd. is financially robust with strong profitability and a solid balance sheet. The company manages its operations efficiently, as reflected in its margins and low leverage. However, fluctuations in revenue growth and free cash flow suggest potential volatility and the need for strategic investments.

Income Statement

Divgi TorqTransfer Systems Ltd. demonstrates solid profitability with strong gross and net profit margins over the years. Despite a decrease in revenue in 2024-2025, the company maintained a healthy EBIT and EBITDA margin, indicating efficient cost management and operational strength. Revenue growth has fluctuated, showing robust growth between 2020 and 2023 but a decline in 2024-2025, which may suggest market volatility or competitive pressures.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio, highlighting prudent financial management and minimal leverage risk. The return on equity remains impressive, underscoring effective use of shareholder funds. The equity ratio is high, indicating a robust capital structure and financial stability, which is a positive indicator for future growth and resilience against market fluctuations.

Cash Flow

Divgi TorqTransfer Systems Ltd. has shown mixed performance in cash flow management. While operating cash flows remain strong and exceed net income, indicating good cash conversion, free cash flow has been volatile, notably turning negative in certain years. This could indicate high capital expenditures or investment activities, which need to be monitored to ensure they translate into future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.19B	2.50B	2.69B	2.30B	1.81B
Gross Profit	1.43B	1.31B	1.35B	1.47B	692.08M	1.08B
EBITDA	637.66M	585.69M	727.91M	822.23M	739.43M	605.14M
Net Income	273.60M	243.92M	397.35M	511.62M	461.51M	380.44M
Balance Sheet
Total Assets	0.00	6.60B	6.41B	6.42B	4.05B	3.63B
Cash, Cash Equivalents and Short-Term Investments	2.85B	2.98B	2.64B	3.11B	1.73B	1.59B
Total Debt	0.00	10.75M	15.63M	25.37M	4.76M	11.22M
Total Liabilities	-5.97B	636.81M	610.47M	907.15M	653.55M	670.06M
Stockholders Equity	5.97B	5.97B	5.80B	5.51B	3.40B	2.96B
Cash Flow
Free Cash Flow	0.00	87.10M	-452.72M	-276.10M	111.51M	13.97M
Operating Cash Flow	0.00	352.13M	324.61M	408.21M	510.77M	269.65M
Investing Cash Flow	0.00	-425.29M	60.69M	-2.13B	-510.78M	-245.78M
Financing Cash Flow	0.00	-88.22M	-117.15M	1.60B	-29.33M	-26.23M

Divgi TorqTransfer Systems Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 618.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIVGIITTS, the sentiment is Negative. The current price of 618 is above the 20-day moving average (MA) of 598.73, above the 50-day MA of 606.71, and above the 200-day MA of 592.85, indicating a bearish trend. The MACD of -3.16 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DIVGIITTS.

Divgi TorqTransfer Systems Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPAL	70 Outperform	₹12.65B	14.69	―	2.86%	―	―
AUTOAXLES	68 Neutral	₹28.90B	18.39	―	1.63%	-2.78%	2.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIVGIITTS	61 Neutral	₹17.99B	59.43	―	0.44%	12.30%	-6.54%
TALBROAUTO	61 Neutral	₹16.64B	17.39	―	0.32%	0.74%	-17.90%
HITECHGEAR	60 Neutral	₹14.17B	49.54	―	0.74%	-17.86%	-49.46%
IGARASHI	54 Neutral	₹13.57B	88.91	―	0.57%	0.94%	-32.59%