Divgi Torqtransfer Systems Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 12:23 pm

Market Cap	1,903 Cr.
Current Price	622
High / Low	1,022/571
Stock P/E	58.8
Book Value	192
Dividend Yield	0.42 %
ROCE	9.52 %
ROE	7.02 %
Face Value	5.00
PEG Ratio	-1.09

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Divgi Torqtransfer Systems Ltd

Competitors of Divgi Torqtransfer Systems Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Divgi Torqtransfer Systems Ltd	1,903 Cr.	622	1,022/571	58.8	192	0.42 %	9.52 %	7.02 %	5.00
Industry Average	1,903.00 Cr	622.00		58.80	192.00	0.42%	9.52%	7.02%	5.00

All Competitor Stocks of Divgi Torqtransfer Systems Ltd

Quarterly Result

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	58.31	63.57	70.14	63.99	73.34	56.57	68.75	63.05	65.06	54.23
Expenses	45.31	45.06	51.57	45.88	54.06	43.83	54.47	50.15	51.92	45.49
Operating Profit	13.00	18.51	18.57	18.11	19.28	12.74	14.28	12.90	13.14	8.74
OPM %	22.29%	29.12%	26.48%	28.30%	26.29%	22.52%	20.77%	20.46%	20.20%	16.12%
Other Income	4.94	1.08	2.76	1.17	2.62	5.05	4.79	4.63	5.10	5.15
Interest	0.06	0.02	0.12	0.02	0.12	0.07	0.08	0.05	0.21	0.06
Depreciation	2.90	3.14	3.14	3.04	3.67	3.64	4.53	4.84	5.68	5.76
Profit before tax	14.98	16.43	18.07	16.22	18.11	14.08	14.46	12.64	12.35	8.07
Tax %	22.56%	25.62%	25.62%	25.71%	25.73%	25.92%	25.86%	25.87%	25.43%	26.02%
Net Profit	11.61	12.22	13.44	12.05	13.45	10.43	10.72	9.37	9.21	5.96
EPS in Rs	4.22	4.44	4.88	4.38	4.40	3.41	3.51	3.06	3.01	1.95

Last Updated: October 7, 2024, 8:12 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	159	187	159	187	234	271	253	251
Expenses	115	133	122	135	168	196	200	202
Operating Profit	44	54	37	52	66	75	53	49
OPM %	28%	29%	23%	28%	28%	28%	21%	20%
Other Income	5	9	12	8	8	8	20	20
Interest	6	1	5	0	0	0	1	0
Depreciation	4	6	6	8	11	13	19	21
Profit before tax	40	56	38	53	62	69	54	48
Tax %	36%	28%	26%	28%	26%	26%	26%
Net Profit	25	40	28	38	46	51	40	35
EPS in Rs	469.10	747.45	465.55	552.67	16.76	16.73	12.99	11.53
Dividend Payout %	0%	0%	6%	0%	20%	20%	20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	60.00%	-30.00%	35.71%	21.05%	10.87%	-21.57%
Change in YoY Net Profit Growth (%)	0.00%	-90.00%	65.71%	-14.66%	-10.18%	-32.44%

Divgi Torqtransfer Systems Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	6%
3 Years:	11%
TTM:	-10%

Compounded Profit Growth
10 Years:	%
5 Years:	0%
3 Years:	1%
TTM:	-31%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-37%

Return on Equity
10 Years:	%
5 Years:	11%
3 Years:	10%
Last Year:	7%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:50 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	5	5	6	7	14	15	15	15
Reserves	91	227	204	289	326	536	565	571
Borrowings	49	2	0	1	0	3	2	1
Other Liabilities	40	45	96	69	68	93	63	57
Total Liabilities	185	279	306	366	408	646	644	644
Fixed Assets	72	78	89	105	112	117	227	233
CWIP	2	9	6	6	28	93	26	23
Investments	0	0	0	0	0	0	0	0
Other Assets	111	191	211	254	268	437	392	387
Total Assets	185	279	306	366	408	646	644	644

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	38	27	51	41	32
Cash from Investing Activity +	-24	-25	-51	-213	6
Cash from Financing Activity +	-6	-3	-3	160	-12
Net Cash Flow	8	-0	-3	-13	27

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-5.00	52.00	37.00	51.00	66.00	72.00	51.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	85	74	54	107	82	99	91
Inventory Days	139	108	146	161	129	119	133
Days Payable	162	112	144	217	155	151	129
Cash Conversion Cycle	62	70	55	51	57	66	95
Working Capital Days	59	42	-72	65	53	49	92
ROCE %		30%	19%	21%	20%	15%	10%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	60.49%	60.49%	60.49%	60.49%	60.49%	60.49%	60.49%
FIIs	1.08%	3.09%	3.63%	3.57%	2.94%	2.69%	1.74%
DIIs	28.48%	26.22%	25.47%	25.08%	25.42%	24.90%	25.69%
Public	9.97%	10.20%	10.41%	10.86%	11.15%	11.94%	12.10%
No. of Shareholders	15,077	14,488	16,951	19,187	20,671	22,343	23,778

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Small Cap Fund	1,152,910	0.16	82.25	116,940	2024-12-24	885.9%
ICICI Prudential Smallcap Fund	620,449	0.57	44.26	116,940	2024-12-24	430.57%
ICICI Prudential Transportation and Logistics Fund	501,118	1.22	35.75	116,940	2024-12-24	328.53%
ICICI Prudential Large & Mid Cap Fund	373,010	0.2	26.61	116,940	2024-12-24	218.98%
ICICI Prudential ESG Exclusionary Strategy Fund	222,668	1.13	15.89	116,940	2024-12-24	90.41%
ICICI Prudential Manufacturing Fund	160,527	0.24	11.45	116,940	2024-12-24	37.27%
ICICI Prudential Innovation Fund	157,437	0.22	11.23	116,940	2024-12-24	34.63%
Edelweiss Recently Listed IPO Fund	150,000	1.2	10.7	116,940	2024-12-24	28.27%
LIC MF Large & Mid Cap Fund	116,940	0.3	8.34	116,940	2024-12-24	0%
ICICI Prudential Regular Savings Fund	101,925	0.21	6.98	116,940	2024-12-24	-12.84%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	5.00	5.00	5.00	100.00	100.00
Basic EPS (Rs.)	12.99	18.45	16.76	13.82	513.15
Diluted EPS (Rs.)	12.99	18.45	16.76	13.82	449.01
Cash EPS (Rs.)	19.10	20.98	20.90	663.27	613.09
Book Value[Excl.RevalReserv]/Share (Rs.)	189.77	180.26	123.50	4298.64	4297.66
Book Value[Incl.RevalReserv]/Share (Rs.)	189.77	180.26	123.50	4298.64	4297.66
Dividend / Share (Rs.)	2.60	3.35	3.34	30.82	26.00
Revenue From Operations / Share (Rs.)	82.87	88.63	84.91	2710.66	2641.12
PBDIT / Share (Rs.)	23.75	26.84	26.77	876.78	794.64
PBIT / Share (Rs.)	17.64	22.60	22.64	766.23	694.71
PBT / Share (Rs.)	17.50	22.51	22.57	763.56	690.64
Net Profit / Share (Rs.)	12.99	16.73	16.76	552.72	513.15
PBDIT Margin (%)	28.65	30.28	31.53	32.34	30.08
PBIT Margin (%)	21.28	25.49	26.65	28.26	26.30
PBT Margin (%)	21.12	25.39	26.58	28.16	26.14
Net Profit Margin (%)	15.67	18.87	19.74	20.39	19.42
Return on Networth / Equity (%)	6.84	9.28	13.57	12.85	11.94
Return on Capital Employeed (%)	9.19	12.41	18.03	17.46	15.79
Return On Assets (%)	6.19	7.96	11.38	10.48	10.20
Asset Turnover Ratio (%)	0.39	0.51	0.60	0.56	0.54
Current Ratio (X)	6.94	5.02	4.40	4.09	5.37
Quick Ratio (X)	6.28	4.65	3.90	3.65	4.82
Inventory Turnover Ratio (X)	3.30	3.56	3.30	2.90	2.77
Dividend Payout Ratio (NP) (%)	25.78	18.02	4.59	4.52	13.03
Dividend Payout Ratio (CP) (%)	17.53	14.37	3.68	3.77	10.90
Earning Retention Ratio (%)	74.22	81.98	95.41	95.48	86.97
Cash Earning Retention Ratio (%)	82.47	85.63	96.32	96.23	89.10
Interest Coverage Ratio (X)	178.44	291.13	444.04	327.98	195.16
Interest Coverage Ratio (Post Tax) (X)	98.63	182.43	279.02	207.76	127.03
Enterprise Value (Cr.)	2089.33	1703.82	0.00	0.00	0.00
EV / Net Operating Revenue (X)	8.24	6.29	0.00	0.00	0.00
EV / EBITDA (X)	28.77	20.75	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	9.29	7.43	0.00	0.00	0.00
Retention Ratios (%)	74.21	81.97	95.40	95.47	86.96
Price / BV (X)	4.05	3.65	0.00	0.00	0.00
Price / Net Operating Revenue (X)	9.29	7.43	0.00	0.00	0.00
EarningsYield	0.01	0.02	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Divgi Torqtransfer Systems Ltd as of December 26, 2024 is: 795.86

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Divgi Torqtransfer Systems Ltd is Undervalued by 27.95% compared to the current share price 622.00

Intrinsic Value of Divgi Torqtransfer Systems Ltd as of December 26, 2024 is: 367.04

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Divgi Torqtransfer Systems Ltd is Overvalued by 40.99% compared to the current share price 622.00

Last 5 Year EPS CAGR: -53.88%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 16.43%, which is a positive sign. The company has higher reserves (351.13 cr) compared to borrowings (7.25 cr), indicating strong financial stability. The company has shown consistent growth in sales (212.63 cr) and profit (52.50 cr) over the years.	The stock has a high average Working Capital Days of 41.14, which may not be favorable. The stock has a high average Cash Conversion Cycle of 65.14, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Divgi Torqtransfer Systems Ltd:
1. Net Profit Margin: 15.67%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 9.19% (Industry Average ROCE: 9.52%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 6.84% (Industry Average ROE: 7.02%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 98.63
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 6.28
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 58.8 (Industry average Stock P/E: 58.8)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Auto Ancl - Others

INDUSTRY	ADDRESS	CONTACT
Plot No. 75, General Block, MIDC, Pune Maharashtra 411026	Mr.	Praveen%20Kadle Chairman%20&%20Ind.Director

Management
Name	Position Held
Mr. Jitenra Bhaskar Divgi	Managing Director
Mr. Hirendra Bhaskar Divgi	Whole Time Director
Mr. Bharat Divgi	Non Executive Director
Mr. Sanjay Divgi	Non Executive Director
Mr. Pradip Dubhashi	Independent Director
Mr. Pundalik Dinkar Kudva	Independent Director
Mrs. Geeta Tolia	Independent Director

FAQ

What is the latest intrinsic value of Divgi Torqtransfer Systems Ltd?

The latest intrinsic value of Divgi Torqtransfer Systems Ltd as on 26 December 2024 is ₹795.86, which is 27.95% higher than the current market price of ₹622.00. The stock has a market capitalization of 1,903 Cr. and recorded a high/low of 1,022/571 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹571 Cr and total liabilities of ₹644 Cr.

What is the Market Cap of Divgi Torqtransfer Systems Ltd?

The Market Cap of Divgi Torqtransfer Systems Ltd is 1,903 Cr..

What is the current Stock Price of Divgi Torqtransfer Systems Ltd as on 26 December 2024?

The current stock price of Divgi Torqtransfer Systems Ltd as on 26 December 2024 is 622.

What is the High / Low of Divgi Torqtransfer Systems Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Divgi Torqtransfer Systems Ltd stocks is 1,022/571.

What is the Stock P/E of Divgi Torqtransfer Systems Ltd?

The Stock P/E of Divgi Torqtransfer Systems Ltd is 58.8.

What is the Book Value of Divgi Torqtransfer Systems Ltd?

The Book Value of Divgi Torqtransfer Systems Ltd is 192.

What is the Dividend Yield of Divgi Torqtransfer Systems Ltd?

The Dividend Yield of Divgi Torqtransfer Systems Ltd is 0.42 %.

What is the ROCE of Divgi Torqtransfer Systems Ltd?

The ROCE of Divgi Torqtransfer Systems Ltd is 9.52 %.

What is the ROE of Divgi Torqtransfer Systems Ltd?

The ROE of Divgi Torqtransfer Systems Ltd is 7.02 %.

What is the Face Value of Divgi Torqtransfer Systems Ltd?

The Face Value of Divgi Torqtransfer Systems Ltd is 5.00.