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Diffusion Engineers Ltd (DIFFNKG)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 544264 NSE: DIFFNKG Electrodes & Welding Equipment | Small Cap | Diffusion Engineers Share Price

₹391.75 -0.45 (-0.11%)

As on 14-Aug'26 16:59

Diffusion Engineers Ltd (DIFFNKG)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 544264 NSE: DIFFNKG Electrodes & Welding Equipment | Small Cap | Diffusion Engineers Share Price

₹391.75 -0.45 (-0.11%)

As on 14-Aug'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹1,466 Cr.
Current Price
₹391.8
52-Week Low / High
₹222 / 453
TTM EPS
₹10.8
TTM Sales
₹377 Cr.
Book Value per Share
₹105.4
P/E Ratio
36.28
Higher than its 5-year historical median
Industry PE
45.3
Price to Book (P/B)
3.72
Higher than its 5-year historical median
Price to Sales (P/S)
3.89
Higher than its 5-year historical median
EV/EBITDA
22.31
Higher than its 5-year historical median
Dividend Yield
0.38%
Profitability Efficiency
Return on Equity (ROE)
12.08%
Outperforms industry median
Return on Capital Employed (ROCE)
15.06%
Outperforms industry median
Return on Assets (ROA)
9.86%
Operating Profit Margin
13.2%
Net Profit Margin
12.6%
Gross Profit Margin
18.1%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Slowing versus 3-year growth rate
12.06%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
13.75%
Net Profit Growth (1 Year)
Slowing versus 3-year growth rate
32.27%
Asset Quality
Promoter Holding
69.76%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹357 Cr.
Equity
₹37.4 Cr.
Face Value
₹10
All Time Low / High
₹188.00 / 489.30

Diffusion Engineers stock performance

Key Ratios
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Quality

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Valuation

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Price Trend

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Q.1 Is Diffusion Engineers Ltd a good quality company?
Diffusion Engineers Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Diffusion Engineers Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Diffusion Engineers Ltd vs industry peers?
Diffusion Engineers Ltd revenue CAGR is 16.65%, compared to the industry median CAGR of 12.12%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Diffusion Engineers Ltd?
Promoters hold 69.76% of the Diffusion Engineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Diffusion Engineers Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 18.05% based on the current price.

10 Year X-Ray : Login to view analysis.

Analysis of Financial Track Record (Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end)

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Diffusion Engineers Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
ROCE % 16.4%14.2%16.2%12.6%13.6%16.3%15%16.8%15.5%15.1%-
Value Creation
Index
0.20.00.2-0.10.00.20.10.20.1NA-

Growth Parameters

Sales 106108152146152196244257316354377
Sales YoY Gr.-2.3%40.7%-3.9%4.1%28.5%24.7%5.4%22.9%12.1%-
Adj EPS 2.73.23.63.245.56.17.18.411.410.8
YoY Gr.-17.5%13.7%-10.1%24.8%36.6%11.5%15.4%18.4%36.1%-
BVPS (₹) 27.630.933.536.640.146.252.263.694.9102.7105.4
Adj Net
Profit
78.29.48.410.514.41619.831.342.640
Cash Flow from Ops. 4.59.914.311.620.15.5-1631.6517.5-
Debt/CF from Ops. 5.31.812.714.4-31.14.31.6-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 14.4%18.4%13.2%12.1%
Adj EPS 17.4%23.1%23%36.1%
BVPS15.7%20.7%25.3%8.3%
Share Price - - - 18.1%

Key Financial Parameters

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
Return on
Equity %
10.310.811.19.210.512.712.412.611.711.510.4
Op. Profit
Mgn %
13.312.811.810.512.711.110.411.81313.313.4
Net Profit
Mgn %
6.67.66.25.86.97.36.67.79.91210.7
Debt to
Equity
0.30.20.20.30.20.20.40.20.10.1-
Working Cap
Days
166197164202201167179196181199140
Cash Conv.
Cycle
9812010512311298112120108125104

Valuation of Diffusion Engineers - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Financials

PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Sales106108152146152196244257316354
Operating Expenses + 9294134131133174220227276309
Manufacturing Costs14141820172531334341
Material Costs4950837484112145144172199
Employee Cost 18192023212529344045
Other Costs 11111314111115152123
Operating Profit 14141815192224304046
Operating Profit Margin (%) 13.3%12.8%11.7%10.5%12.5%11.1%10.0%11.8%12.7%12.9%
Other Income + 331224471020
Exceptional Items 0000000-00-1
Interest 2222212222
Depreciation 3333443446
Profit Before Tax 13121413152123324357
Tax 424455681013
Profit After Tax 99109101617233445
PAT Margin (%) 8.4%8.7%6.4%6.2%6.9%8.1%6.9%9.1%10.7%12.6%
Adjusted EPS (₹)3.43.63.83.54.06.06.48.49.011.9
Dividend Payout Ratio (%)10.50%19.90%17.10%14.40%14.30%9.50%8.90%6%16.60%12.60%
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26

Equity and Liabilities

Shareholders Fund + 72818896105121137178355384
Share Capital 4444444283737
Reserves 68778492101117133150318347
Debt +24171532192246342227
Long Term Debt01112632000
Short Term Debt24171420141945342227
Minority Interest0000000000
Trade Payables14131725182825313239
Others Liabilities 571416121516172026
Total Liabilities 115119133169154186224260429477

Fixed Assets

Net Fixed Assets +394041605658618896108
Gross Block727674101100626899111129
Accumulated Depreciation333534414547111521
CWIP 00000021322
Investments 15151617162421303642
Inventories24263344274247476267
Trade Receivables283034364148736586110
Cash Equivalents 2011422311894
Others Assets 67710101118262733
Total Assets 115119133169154186224260429477
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Cash Flow From Operating Activity + 5101412206-1632517
PBT 13121413152123324357
Adjustment 236903510-7
Changes in Working Capital -7-3-2-75-14-395-30-22
Tax Paid -4-2-4-30-4-5-7-9-11
Cash Flow From Investing Activity + -3-2-4-262-10-4-33-18-31
Capex -5-4-3-231-7-6-31-12-19
Net Investments 000-51-52-5-7-9
Others 22-1111031-3
Cash Flow From Financing Activity + 0-9-914-193203129-11
Net Proceeds from Shares 0000000201580
Net Proceeds from Borrowing 00000-3-1-200
Interest Paid -2-2-2-2-2-1-2-2-2-2
Dividend Paid -1-1-3-10-1-2-2-1-6
Others 3-7-417-17825-12-26-4
Net Cash Flow 2-11-13-2-01116-24
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Ratios
ROE (%)13.0712.2911.669.8910.4213.9513.0614.8512.6612.08
ROCE (%)16.4114.2416.2412.6413.5916.3215.0416.8315.4715.06
Asset Turnover Ratio1.090.961.210.990.951.151.191.060.920.78
PAT to CFO Conversion(x)0.561.111.41.3320.38-0.941.390.150.38
Working Capital Days
Receivable Days81.5094.5075.9085.6091.8082.8090.3097.7087.20101
Inventory Days64.7080.7070.6095.2084.9063.8066.4067.2063.3066.80
Payable Days87.6097.4065.90103.7094.9074.706670.4066.5064.70

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Diffusion Engineers Ltd FAQs

The current trading price of Diffusion Engineers on 14-Aug-2026 16:59 is ₹391.8.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 13-Aug-2026 the market cap of Diffusion Engineers stood at ₹1,466.2 Cr

The latest P/E ratio of Diffusion Engineers as of 13-Aug-2026 is 36.28.

The latest P/B ratio of Diffusion Engineers as of 13-Aug-2026 is 3.72.

The 52-week high of Diffusion Engineers is ₹453.1 and the 52-week low is ₹222.1.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Diffusion Engineers is ₹377 ( Cr.) .

Past 10 year's financial track record analysis by Moneyworks4me indicates that Diffusion Engineers Ltd is a good quality company.

The key valuation ratios of Diffusion Engineers Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Diffusion Engineers Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

About Diffusion Engineers Ltd

The company was incorporated under the provisions of the Companies Act, 1956 with the name “Diffusion Engineers Private Limited” pursuant to certificate of incorporation dated November 05, 1982 issued by Registrar of Companies, Maharashtra. Further, pursuant to resolutions passed by the company’s Board of Directors at its meeting held on May 06, 1995 and by its Shareholders at the extra-ordinary general meeting held on May 17, 1995, the company was converted into a public limited company. Consequently, the company’s name was changed to “Diffusion Engineers Limited” and a fresh Certificate of Incorporation dated July 03, 1995, was issued by the Registrar of Companies, Karnataka at Bangalore.

Diffusion Engineers is engaged in the business of manufacturing welding consumables, wear plates and wear parts and heavy engineering machinery for core industries. The company is dedicated to providing specialized repairs and reconditioning services for heavy machinery and equipment. Additionally, it is also involved in trading of anti-wear powders and welding and cutting machinery. It provides super conditioning process at its manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress and improves their repairability ultimately extending their lifespan and reducing production costs. It has developed a synergistic system of forward integration whereby it manufactures special purpose electrodes and flux cored wires which are utilized for manufacturing wear resistance plates (commonly known as wear plates). These wear plates then become an integral part of majority of large industrial equipment which are made in its heavy engineering division and are significant contributor in manufacturing of industrial equipment used in core industries like cement, steel, power, mining, engineering, oil & gas, sugar, etc. This forward integration helps it in achieving efficiency in the production process and gaining competitive advantage, reducing product costs, enhancing supply chain control and reducing its dependency on third-party suppliers for its operations.

The company focuses on alloy and process development, quality and design to tailor-make products as per its customers’ needs. It presently operates from four manufacturing units, out of which Unit I, II and III are located in Nagpur Industrial Area, Hingna, Nagpur, Maharashtra and Unit IV is located in Khapri (Uma), Nagpur, Maharashtra for processing and manufacturing of its products. Each Unit is supported by necessary infrastructure for storage of raw materials, manufacturing of its products, storage of finished goods, together with quality control measures.

Business area of the company

The company is engaged in the business of providing engineering solutions to customers both in domestic and international market. It provides a wide range of products and services including manufacture of special welding consumables, wear plates and heavy engineering equipment for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment. It is also involved in trading of anti-wear powders and welding and cutting machinery. 

Key awards, accreditations & recognitions 

  • 2019: Best Employer Brands by Employer Branding Institution.
  • 2019: Vidharbha Udyog Gaurav Awards for outstanding contribution to industrial development of Vidharbha.
  • 2019: India SME 100 Award.
  • 2019: Brand Leadership Award by World Marketing Congress.
  • 2020: ET Industry Leaders – MSME 2020 has felicitated the company for exemplary contribution being a MSME for Industrial Engineering.
  • 2021: National Accreditation Board for Testing and Calibration Laboratories accredited the company’s factory at T-5 and T-6 with ISO/IEC 17025:2017 certificate for General Requirements for the Competence of Testing & Calibration Laboratories.
  • 2022: Great Place to Work Certification.
  • 2023: Great Place to Work Certification.
  • 2023: National Accreditation Board for Testing and Calibration Laboratories accredited the company’s factory at T-5 and T-6 with ISO/IEC 17025:2017 certificate for General Requirements for the Competence of Testing & Calibration Laboratories. 

Key events and milestones

  • 1982: Incorporated as a Private Limited Company.
  • 1993: Commenced manufacturing of welding electrodes.
  • 1994: Acquired land (in part) for manufacturing facility at Unit I.
  • 1995: Converted from Private Limited Company to Public Limited Company.
  • 1995: Acquired land (in part) for manufacturing facility at Unit I.
  • 1995: Acquired a subsidiary company, Diffusion Super Conditioning Services Private Limited.
  • 1997: Commencement of production of flux cored wires and wear plates.
  • 2000: Acquired land (N-78) for manufacturing facility at Unit II.
  • 2006: Acquired land (N-79) for manufacturing facility at Unit II.
  • 2011: Acquired land (Khasra no. 35 and 36) for manufacturing facility at Unit IV.
  • 2012: Acquired land (Khasra no. 38/1, 38/2 and 38/3) for manufacturing facility at Unit IV
  • 2012: Established subsidiary company, Diffusion Hernon Adhesive and Sealant Private Limited.
  • 2012: Invested in overseas joint venture company, LSN Diffusion Limited (United Kingdom).
  • 2013: Established subsidiary company in Singapore, Diffusion Engineers Singapore Pte Ltd.
  • 2013: Invested in an associate of subsidiary in Singapore, Mecdiff Sdn Bhd (Malaysia).
  • 2014: Established a step-down subsidiary company of Singapore Subsidiary in Philippines, Diffusion Wear Solutions Philippines Inc.
  • 2015: Acquired land for manufacturing facility at Unit III.
  • 2016: Set up and commenced operations at Unit IV.
  • 2017: Crossed turnover of Rs 1,000.00 million.
  • 2019: Crossed turnover of Rs 1,500.00 million.
  • 2022: Undertook expansion of manufacturing facility at Unit IV.
  • 2023: Crossed turnover of Rs 2,000.00 million.
  • 2024: Acquired leasehold land (Plot Nos. 33-B/1/1/ & 33-B/1/1/Part, MIDC, Hingna, Sonegaon District, Nagpur, Maharashtra) for the Proposed Facility.


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