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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

₹360.85 -1.40 (-0.39%)

As on 12-Jun'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

₹360.85 -1.40 (-0.39%)

As on 12-Jun'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹1,351 Cr.
Current Price
₹360.9
52-Week Low / High
₹222 / 418
TTM EPS
₹11.9
TTM Sales
₹354 Cr.
Book Value per Share
₹102.7
P/E Ratio
30.25
Higher than its 5-year historical median
Industry PE
42.6
Price to Book (P/B)
3.51
Higher than its 5-year historical median
Price to Sales (P/S)
3.81
Higher than its 5-year historical median
EV/EBITDA
19.43
Higher than its 5-year historical median
Dividend Yield
0.57%
Profitability Efficiency
Return on Equity (ROE)
12.66%
Outperforms industry median
Return on Capital Employed (ROCE)
15.47%
Outperforms industry median
Return on Assets (ROA)
9.80%
Operating Profit Margin
12.9%
Net Profit Margin
10.68%
Gross Profit Margin
15.1%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Improving versus 3-year growth rate
22.9%
Operating Profit Growth (1 Year)
Improving versus 3-year growth rate
32.41%
Net Profit Growth (1 Year)
Improving versus 3-year growth rate
44.23%
Asset Quality
Promoter Holding
69.76%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹347 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 16.64%, compared to the industry median CAGR of 7.29%, 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 19.12% 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'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 17.4%16.4%14.2%16.2%12.6%13.6%16.3%15%16.8%15.5%-
Value Creation
Index
0.20.20.00.2-0.10.00.20.10.20.1-

Growth Parameters

Sales 94106108152146152196244257316354
Sales YoY Gr.-12.7%2.3%40.7%-3.9%4.1%28.5%24.7%5.4%22.9%-
Adj EPS 3.12.73.23.63.245.56.17.18.411.9
YoY Gr.--13%17.5%13.7%-10.1%24.8%36.6%11.5%15.4%18.4%-
BVPS (₹) 24.527.630.933.536.640.146.252.263.694.9102.7
Adj Net
Profit
8.178.29.48.410.514.41619.831.345
Cash Flow from Ops. 7.24.59.914.311.620.15.5-1631.65-
Debt/CF from Ops. 2.95.31.812.714.4-31.14.3-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 14.4%16.6%17.3%22.9%
Adj EPS 11.7%21%15.1%18.4%
BVPS16.3%21%27.1%49.1%
Share Price - - - 19.8%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
13.310.310.811.19.210.512.712.412.611.712.1
Op. Profit
Mgn %
15.613.312.811.810.512.711.110.411.812.913.3
Net Profit
Mgn %
8.66.67.66.25.86.97.36.67.79.912.6
Debt to
Equity
0.30.30.20.20.30.20.20.40.20.10
Working Cap
Days
183166197164202201167179196181140
Cash Conv.
Cycle
1059812010512311298112120108104

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales94106108152146152196244257316
Operating Expenses + 799294134131133174220227276
Manufacturing Costs0141418201725313343
Material Costs534950837484112145144172
Employee Cost 16181920232125293440
Other Costs 11111113141111151521
Operating Profit 15141418151922243040
Operating Profit Margin (%) 15.6%13.3%12.8%11.7%10.5%12.5%11.1%10.0%11.8%12.7%
Other Income + 13312244710
Exceptional Items 00000000-00
Interest 2222221222
Depreciation 2333344344
Profit Before Tax 12131214131521233243
Tax 44244556810
Profit After Tax 8991091016172334
PAT Margin (%) 8.8%8.4%8.7%6.4%6.2%6.9%8.1%6.9%9.1%10.7%
Adjusted EPS (₹)3.23.43.63.83.54.06.06.48.49.0
Dividend Payout Ratio (%)11.40%10.50%19.90%17.10%14.40%14.30%9.50%8.90%6%16.60%

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!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 6472818896105121137178355
Share Capital 444444442837
Reserves 6068778492101117133150318
Debt +21241715321922463422
Long Term Debt60111263200
Short Term Debt15241714201419453422
Minority Interest0000000000
Trade Payables10141317251828253132
Others Liabilities 55714161215161720
Total Liabilities 100115119133169154186224260429

Fixed Assets

Net Fixed Assets +30394041605658618896
Gross Block61727674101100626899111
Accumulated Depreciation303335344145471115
CWIP 7000000213
Investments 14151516171624213036
Inventories18242633442742474762
Trade Receivables24283034364148736586
Cash Equivalents flag 120114223118
Others Assets 6677101011182627
Total Assets 100115119133169154186224260429

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 75101412206-16325
PBT 12131214131521233243
Adjustment 4236903510
Changes in Working Capital -5-7-3-2-75-14-395-30
Tax Paid -3-4-2-4-30-4-5-7-9
Cash Flow From Investing Activity + -9-3-2-4-262-10-4-33-18
Capex -9-5-4-3-231-7-6-31-12
Net Investments 0000-51-52-5-7
Others 022-1111031
Cash Flow From Financing Activity + 20-9-914-193203129
Net Proceeds from Shares 0000000020158
Net Proceeds from Borrowing 000000-3-1-20
Interest Paid -2-2-2-2-2-2-1-2-2-2
Dividend Paid -1-1-1-3-10-1-2-2-1
Others 53-7-417-17825-12-26
Net Cash Flow -02-11-13-2-01116

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)13.6213.0712.2911.669.8910.4213.9513.0614.8512.66
ROCE (%)17.3716.4114.2416.2412.6413.5916.3215.0416.8315.47
Asset Turnover Ratio0.991.090.961.210.990.951.151.191.060.92
PAT to CFO Conversion(x)0.880.561.111.41.3320.38-0.941.390.15
Working Capital Days
Receivable Days87.9081.5094.5075.9085.6091.8082.8090.3097.7087.20
Inventory Days72.1064.7080.7070.6095.2084.9063.8066.4067.2063.30
Payable Days7687.6097.4065.90103.7094.9074.706670.4066.50

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Diffusion Engineers Ltd FAQs

The current trading price of Diffusion Engineers on 12-Jun-2026 16:59 is ₹360.9.

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 11-Jun-2026 the market cap of Diffusion Engineers stood at ₹1,350.5 Cr

The latest P/E ratio of Diffusion Engineers as of 11-Jun-2026 is 30.25.

The latest P/B ratio of Diffusion Engineers as of 11-Jun-2026 is 3.51.

The 52-week high of Diffusion Engineers is ₹417.6 and the 52-week low is ₹222.1.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Diffusion Engineers is ₹354 ( 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 Strong which suggest that the price of Diffusion Engineers Ltd is likely to Rise 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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