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Check Before You Invest : Divgi Torqtransfer Systems Ltd

BSE: 543812 NSE: DIVGIITTS ISIN: INE753U01022
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Divgi Torqtransfer Systems Ltd belong to?
Divgi Torqtransfer Systems Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Divgi Torqtransfer Systems Ltd a good quality company?
Divgi Torqtransfer Systems Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Divgi Torqtransfer Systems Ltd undervalued or overvalued?
Divgi Torqtransfer Systems Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Divgi Torqtransfer Systems Ltd a good buy now?
Divgi Torqtransfer Systems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd revenue growth is -13.6% for FY-2025 , which is below its 5 year CAGR of 6.6% , indicating slower growth.
Q.2 Gross Profit margin of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.6% for FY-2025 , which is below its 5 year median of 30.2% , indicating decreasing margins.
Q.3 Operating Profit Margin of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.16% for FY-2025 , which is below its 5 year median of 27.52% indicating decreasing margins.
Q.4 Net Profit Margin of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Net Profit Margin is 11.14% for FY-2025 , is below with its 5 year median of 18.88%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 26.6 30.2
Operating Profit Margin 17.16 27.52
Net Profit Margin 11.14 18.88
Q.5 Return on Asset of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Return on Asset is 3.75%, which is below its 5 year historical median of 9.77%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Return on equity is 4.14% for FY-2025 , which is below its historical median of 11.48%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Return on capital employed is 5.71% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Cash conversion cycle is 88 days, above its historical median of 47 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.34 0.52
ROE 4.14 11.48
ROCE 5.71 15.53
Cash Conversion Cycle 88 days 47 days
Q.9 Debt to Equity ratio of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Divgi Torqtransfer Systems Ltd?
Divgi Torqtransfer Systems Ltd Debt to cash flow from operations is 0.01 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Divgi Torqtransfer Systems Ltd?
Promoters hold 60.56% of the Divgi Torqtransfer Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Divgi Torqtransfer Systems Ltd vs industry peers?
Divgi Torqtransfer Systems Ltd revenue CAGR is 6.60% , compared to the industry median CAGR of 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 218.9 492.3
Gross Profit 58.3 44.4
Operating Profit 38 47
Net Profit 24 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.34 1.23
ROE 4.14 11.57
ROCE 5.71 13.36
Cash Conversion Cycle (days) 88.39 47

Valuation & price assessment

Q.1 Stock return of Divgi Torqtransfer Systems Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 0.96% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 1% 62.9%
Q.3 Valuation ratios of Divgi Torqtransfer Systems Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 57.79 50.60 39.31
Price to Book 3.43 3.89 2.88
Price to Sales 7.01 8.50 1.29
EV to EBITDA 23.3 25.63 11.85

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