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Divgi TorqTransfer Systems Ltd.
(DIVGIITTS)
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Rating:69Neutral
Price Target:
₹1,245.00
▲(101.46% 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
Very Low Leverage
A minimally leveraged balance sheet reduces financial risk and preserves flexibility through automotive downcycles. Growing equity and assets provide a stronger capital base, allowing the company to support operations and pursue opportunities without relying heavily on debt financing.
Negative Factors
Unpredictable Free Cash Flow
Volatile and sometimes negative free cash flow makes cash conversion less dependable than reported earnings. Periods of heavier reinvestment or working-capital swings can restrict internally funded expansion, reduce capital-allocation flexibility, and make financial performance harder to forecast.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
A minimally leveraged balance sheet reduces financial risk and preserves flexibility through automotive downcycles. Growing equity and assets provide a stronger capital base, allowing the company to support operations and pursue opportunities without relying heavily on debt financing.
Read all positive factors
Divgi TorqTransfer Systems Ltd. (DIVGIITTS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹34.78B
Dividend Yield0.29%
Average Volume (3M)7.83K
Price to Earnings (P/E)55.5
Beta (1Y)1.18
Revenue Growth77.00%
EPS Growth131.14%
CountryIN
Employees278
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)20.67
Shares Outstanding30,582,928
10 Day Avg. Volume6,874
30 Day Avg. Volume7,834
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)2.96
Price to Sales (P/S)5.34
P/FCF Ratio103.25
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)29.3
Revenue Forecast (FY)₹5.45B
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 ...
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 ...
Divgi TorqTransfer Systems Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| 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 | 739.43M |
| Net Income | 632.37M | 469.26M | 243.92M | 397.35M | 511.62M | 461.51M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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
Neutral
618.00
Price Trends
1133.51
Positive
986.37
Positive
824.75
Positive
Market Momentum
6.66
Positive
46.91
Neutral
46.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIVGIITTS, the sentiment is Neutral. The current price of 618 is below the 20-day moving average (MA) of 1164.17, below the 50-day MA of 1133.51, and below the 200-day MA of 824.75, indicating a neutral trend. The MACD of 6.66 indicates Positive momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DIVGIITTS.
Divgi TorqTransfer Systems Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ₹503.02B | 71.88 | ― | 0.42% | 39.56% | 17.82% | |
69 Neutral | ₹34.78B | 55.49 | ― | 0.29% | 77.00% | 131.14% | |
69 Neutral | ₹1.35T | 56.76 | ― | 0.59% | 13.63% | -11.32% | |
68 Neutral | ₹607.42B | 48.16 | ― | 0.90% | 19.66% | 23.81% | |
64 Neutral | ₹255.19B | 50.95 | ― | 0.18% | 9.03% | 3.22% | |
63 Neutral | ₹911.91B | 126.95 | ― | 0.46% | 17.54% | -31.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:DIVGIITTS
Divgi TorqTransfer Systems Ltd.
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Divgi TorqTransfer Systems Ltd. Corporate Events
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 gro...
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.