Divgi TorqTransfer Systems Ltd. (DIVGIITTS) AI Stock Analysis

• Market Cap: ₹20.53B
• Dividend Yield: 0.44%
• Average Volume (3M): 725.00
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.01
• 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 profitability and margins

Sustained strong gross and net margins indicate durable operational efficiency and pricing power in drivetrain components. This allows the company to absorb volume volatility, fund R&D for product differentiation, and maintain returns even if OEM volumes soften, supporting long-term competitiveness.

Negative Factors

Recent revenue decline

A recent revenue drop undermines scale economics and could signal program timing issues, lost awards, or market share pressure. If sustained, reduced volumes may compress fixed-cost absorption and margins, complicating reinvestment plans and making future revenue recovery dependent on new OEM wins.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIVGIITTS, the sentiment is Positive. The current price of 618 is below the 20-day moving average (MA) of 669.84, below the 50-day MA of 679.32, and below the 200-day MA of 639.87, indicating a neutral trend. The MACD of -9.11 indicates Negative momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 55.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹12.53B	18.86	―	2.86%	―	―
DIVGIITTS	68 Neutral	₹20.53B	39.75	―	0.44%	12.30%	-6.54%
AUTOAXLES	68 Neutral	₹26.05B	18.33	―	1.63%	-2.78%	2.55%
TALBROAUTO	65 Neutral	₹16.42B	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	₹11.25B	378.45	―	0.74%	-17.86%	-49.46%
IGARASHI	55 Neutral	₹10.20B	98.19	―	0.57%	0.94%	-32.59%