Divgi TorqTransfer Systems Ltd. (DIVGIITTS) AI Stock Analysis

Divgi TorqTransfer Systems Ltd.

(NSE:DIVGIITTS)

Select Model

Rating:69Neutral

Price Target:INR 1,028.00▲(9.47% Upside)

Action:downgraded

Date:08/17/26

The score is driven primarily by strong financial fundamentals led by a very low-debt balance sheet and solid profitability, partially offset by uneven cash conversion (volatile/negative free cash flow). Technically, the trend is strong but overbought signals increase near-term risk. Valuation is a key headwind due to a high P/E and very low dividend yield.

Positive Factors

Low financial riskA minimally leveraged balance sheet reduces financial risk and preserves flexibility through automotive downturns. Growing equity and assets provide a stronger base for investment, customer programs, and operational resilience without relying heavily on external borrowing.

Negative Factors

Unpredictable cash conversionVolatile and frequently negative free cash flow makes reported profits less dependable as a source of internally funded growth. Working-capital swings or heavier reinvestment can restrict flexibility, require closer cash management, and reduce the company’s ability to fund expansion consistently.

Divgi TorqTransfer Systems Ltd. (DIVGIITTS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 28.74B
Dividend Yield: 0.35%
Average Volume (3M): 8,654
Price to Earnings (P/E): 45.5
Beta (1Y): 1.20
Revenue Growth: 77.00%
EPS Growth: 131.14%
Country: India
Employees: 278
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Divgi TorqTransfer Systems Ltd. Business Overview & Revenue Model

Company Description

Divgi TorqTransfer Systems Limited is a global automotive supplier that specializes in the design, development, production, and distribution of advanced engineering solutions and crucial components for original equipment manufacturers (OEMs). The com...

How the Company Makes Money

Divgi TorqTransfer Systems Ltd. primarily makes money by manufacturing and supplying torque transfer/drivetrain components and systems to automotive original equipment manufacturers (OEMs) and tiered automotive supply chains. Revenue is generated thr...

Divgi TorqTransfer Systems Ltd. Financial Statement Overview

Summary

Strong, conservatively financed balance sheet (minimal debt; steady equity/assets growth) and solid profitability with positive net income across periods. However, growth has been choppy and free cash flow is volatile and often negative despite positive operating cash flow, which lowers the financial quality score.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.18B	3.53B	2.19B	2.50B	2.69B	2.30B
Gross Profit	1.96B	1.45B	1.31B	1.35B	1.47B	692.08M
EBITDA	1.05B	922.96M	585.69M	727.91M	822.23M	737.09M
Net Income	632.37M	469.26M	243.92M	397.35M	511.62M	461.51M
Balance Sheet
Total Assets	0	7.31B	6.60B	6.41B	6.42B	4.05B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.95B	2.98B	2.64B	3.11B	1.73B
Total Debt	0	17.70M	10.75M	15.63M	25.37M	4.76M
Total Liabilities	-6.35B	959.63M	636.81M	610.47M	907.15M	653.55M
Stockholders Equity	6.35B	6.35B	5.97B	5.80B	5.51B	3.40B
Cash Flow
Free Cash Flow	-61.72M	182.45M	87.10M	-452.72M	-276.10M	111.51M
Operating Cash Flow	165.64M	625.61M	352.13M	324.61M	408.21M	510.77M
Investing Cash Flow	-1.36M	-377.38M	-425.29M	60.69M	-2.13B	-510.78M
Financing Cash Flow	-83.53M	-87.39M	-88.22M	-117.15M	1.60B	-29.33M

Divgi TorqTransfer Systems Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price939.10

Price Trends

50DMA1105.22Negative

100DMA1032.92Negative

200DMA860.97Positive

Market Momentum

MACD-50.93Negative

RSI38.76Neutral

STOCH55.55Neutral

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 939.10 is below the 20-day moving average (MA) of 987.07, below the 50-day MA of 1105.22, and above the 200-day MA of 860.97, indicating a neutral trend. The MACD of -50.93 indicates Negative momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 55.55 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DIVGIITTS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BOSCHLTD	69Neutral	INR 1.39T	58.91	―	0.57%	13.63%	-11.32%
IN:DIVGIITTS	69Neutral	INR 28.72B	45.46	―	0.35%	77.00%	131.14%
IN:SONACOMS	68Neutral	INR 555.70B	74.21	―	0.38%	42.13%	21.66%
IN:ZFCVINDIA	63Neutral	INR 239.24B	47.90	―	0.19%	9.03%	3.22%
IN:SCHAEFFLER	56Neutral	INR 559.98B	42.55	―	0.98%	22.67%	23.28%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BHARATFORG	50Neutral	INR 843.45B	116.45	―	0.49%	17.54%	-31.63%

* General Sector Average

Performance Comparison

IN:DIVGIITTS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DIVGIITTS	Divgi TorqTransfer Systems Ltd.	939.10	315.23	50.53%
IN:BHARATFORG	Bharat Forge Ltd	1726.00	390.73	29.26%
IN:BOSCHLTD	Bosch Limited	47032.80	10258.62	27.90%
IN:SCHAEFFLER	Schaeffler India Ltd	3582.65	-660.20	-15.56%
IN:SONACOMS	Sona BLW Precision Forgings Ltd.	890.30	412.05	86.16%
IN:ZFCVINDIA	ZF Commercial Vehicle Control Systems India Limited	2102.15	-2.34	-0.11%

Divgi TorqTransfer Systems Ltd. Corporate Events

Divgi TorqTransfer Systems Reshapes Compliance Leadership

Oct 30, 2026

Divgi TorqTransfer Systems Limited has reshuffled its governance team, with the board accepting the resignation of Ms. Ishita Kokare from the role of Compliance Officer effective October 30, 2026, while she continues as Assistant Company Secretary. T...

Divgi TorqTransfer Systems to Meet Investors in Non-Deal Roadshow

Sep 3, 2026

Divgi TorqTransfer Systems Ltd. has announced that its officials will participate in a non-deal roadshow to meet analysts and institutional investors in Mumbai on September 9, 2026, organized by Emkay Global. The meetings, held in 1×1 and group...

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.

Date of analysis: Aug 17, 2026

Divgi TorqTransfer Systems Ltd. AI Stock Analysis