Divgi TorqTransfer Systems Ltd. (DIVGIITTS) AI Stock Analysis

• Market Cap: ₹19.30B
• Dividend Yield: 0.44%
• Average Volume (3M): 725.00
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.03
• Revenue Growth: 12.30%
• EPS Growth: -6.54%
• Country: IN
• Employees: 246
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 3.80
• 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): 19.9
• Revenue Forecast (FY): ₹3.38B

• Rating: 68 Neutral
• Price Target: ₹817.00 ▲(32.20% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is driven primarily by strong underlying financial quality (profitability and a low-leverage balance sheet). This is tempered by an expensive valuation (high P/E with low yield) and only neutral-to-mixed technical momentum.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial flexibility for Divgi TorqTransfer. This reduces refinancing and insolvency risk across auto cycles, supports investment in tooling/capacity for awarded OEM programs, and preserves optionality for M&A or R&D spend.

Negative Factors

Recent revenue decline

A recent drop in revenue interrupts prior growth momentum and may signal lost platform share, softer OEM volumes, or program timing shifts. Sustained revenue weakness would erode scale economics, pressure fixed-cost recovery, and make margin maintenance and investment funding harder.

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 ...

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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 ...

How the Company Makes Money

Divgi TorqTransfer Systems makes money primarily by supplying torque-transfer and drivetrain components to automotive original equipment manufacturers (OEMs). Its core revenue streams are: (1) Sale of products—manufacturing and selling transfer ca...

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Divgi TorqTransfer Systems makes money primarily by supplying torque-transfer and drivetrain components to automotive original equipment manufacturers (OEMs). Its core revenue streams are: (1) Sale of products—manufacturing and selling transfer ca...

Divgi TorqTransfer Systems Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.65B	2.19B	2.50B	2.69B	2.30B	1.81B
Gross Profit	1.62B	1.31B	1.35B	1.47B	692.08M	1.08B
EBITDA	691.73M	585.69M	727.91M	822.23M	739.43M	605.14M
Net Income	302.66M	243.92M	397.35M	511.62M	461.51M	380.44M
Balance Sheet
Total Assets	6.89B	6.60B	6.41B	6.42B	4.05B	3.63B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.98B	2.64B	3.11B	1.73B	1.59B
Total Debt	15.92M	10.75M	15.63M	25.37M	4.76M	11.22M
Total Liabilities	809.29M	636.81M	610.47M	907.15M	653.55M	670.06M
Stockholders Equity	6.08B	5.97B	5.80B	5.51B	3.40B	2.96B
Cash Flow
Free Cash Flow	-61.72M	87.10M	-452.72M	-276.10M	111.51M	13.97M
Operating Cash Flow	165.64M	352.13M	324.61M	408.21M	510.77M	269.65M
Investing Cash Flow	-1.36M	-425.29M	60.69M	-2.13B	-510.78M	-245.78M
Financing Cash Flow	-83.53M	-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 below the 20-day moving average (MA) of 684.98, below the 50-day MA of 673.04, and below the 200-day MA of 638.45, indicating a bearish trend. The MACD of -13.20 indicates Positive momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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	₹12.44B	18.86	―	2.86%	―	―
DIVGIITTS	68 Neutral	₹19.30B	39.75	―	0.44%	12.30%	-6.54%
AUTOAXLES	68 Neutral	₹24.95B	18.33	―	1.63%	-2.78%	2.55%
TALBROAUTO	65 Neutral	₹15.32B	15.60	―	0.32%	0.74%	-17.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HITECHGEAR	60 Neutral	₹10.54B	378.45	―	0.74%	-17.86%	-49.46%
IGARASHI	55 Neutral	₹9.37B	98.19	―	0.57%	0.94%	-32.59%