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Diffusion Engineers Limited
(DIFFNKG)
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Rating:65Neutral
Price Target:
₹487.00
▲(23.04% Upside)
Action:Downgraded
Date:08/11/26
The score is driven primarily by strong growth and a conservative balance sheet, offset by weak cash-flow quality and negative recent free cash flow. Technicals are moderately supportive but not decisive, while valuation is less attractive due to a higher P/E and low dividend yield.
Positive Factors
Revenue Growth and Profitability
Strong multi-year revenue growth, including renewed acceleration in FY2026, indicates expanding sales and market activity. The improved net margin shows that growth is currently translating into meaningful earnings, supporting reinvestment capacity and potentially durable profit generation.
Negative Factors
Weak Cash Conversion
Operating cash flow materially below reported earnings raises concern about earnings quality and the timing of cash realization. Negative free cash flow across two fiscal years may constrain internally funded growth and increase dependence on available liquidity if weak conversion persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Strong multi-year revenue growth, including renewed acceleration in FY2026, indicates expanding sales and market activity. The improved net margin shows that growth is currently translating into meaningful earnings, supporting reinvestment capacity and potentially durable profit generation.
Read all positive factors
Diffusion Engineers Limited (DIFFNKG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹16.50B
Dividend Yield0.33%
Average Volume (3M)29.56K
Price to Earnings (P/E)30.7
Beta (1Y)1.18
Revenue Growth26.48%
EPS Growth34.25%
CountryIN
Employees698
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)14.64
Shares Outstanding37,426,258
10 Day Avg. Volume59,844
30 Day Avg. Volume29,564
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...
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 | 4.36B | 4.07B | 3.35B | 2.78B | 2.53B | 2.03B |
| Gross Profit | 832.53M | 777.86M | 1.12B | 939.65M | 720.40M | 595.36M |
| EBITDA | 666.04M | 740.28M | 470.77M | 470.45M | 343.55M | 271.02M |
| Net Income | 547.38M | 503.23M | 359.09M | 306.59M | 221.64M | 170.24M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 5.10B | 4.44B | 2.76B | 2.30B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 975.63M | 975.63M | 1.27B | 78.13M | 45.29M | 30.61M |
| Total Debt | 0.00 | 286.24M | 232.14M | 344.35M | 480.91M | 245.95M |
| Total Liabilities | -4.06B | 1.05B | 751.19M | 845.67M | 881.77M | 687.10M |
| Stockholders Equity | 4.06B | 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
395.80
Price Trends
409.37
Positive
373.17
Positive
327.34
Positive
Market Momentum
16.10
Negative
58.36
Neutral
36.25
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 395.8 is below the 20-day moving average (MA) of 428.86, below the 50-day MA of 409.37, and above the 200-day MA of 327.34, indicating a bullish trend. The MACD of 16.10 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹146.83B | 38.67 | ― | 0.38% | 5.04% | -10.39% | |
65 Neutral | ₹16.50B | 30.71 | ― | 0.33% | 26.48% | 34.25% | |
63 Neutral | ₹44.07B | 34.89 | ― | 0.21% | 12.19% | -1.62% | |
62 Neutral | ₹104.76B | 103.37 | ― | ― | 64.04% | 78.68% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹140.47B | -1.87 | ― | 0.55% | 4.63% | -4.40% | |
53 Neutral | ₹58.62B | 79.57 | ― | 0.25% | 13.91% | 73.54% |
* General Sector Average
IN:DIFFNKG
Diffusion Engineers Limited
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58.73
14.90%
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Diffusion Engineers Limited Corporate Events
Diffusion Engineers Sets Date for 44th AGM and Aligns Dividend, E-Voting with New Rules
Aug 15, 2026
Diffusion Engineers Limited has scheduled its 44th Annual General Meeting for September 7, 2026, to be held via video conferencing in line with Ministry of Corporate Affairs guidance. Electronic copies of the AGM notice and annual report for the y...
Diffusion Engineers Sets September 7 Date for Digitally-Hosted 44th AGM
Aug 14, 2026
Diffusion Engineers Limited has scheduled its 44th Annual General Meeting for September 7, 2026, to be held via video conferencing and other audio-visual means. The company has circulated an electronic copy of the AGM notice and its annual report ...
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.