Divgi Torq

Why is Divgi Torqtransfer Systems Ltd falling/rising?

As of 28-Jul, Divgi Torqtransfer Systems Ltd's stock price is 959.70, down 1.25 (-0.13%). Despite recent strong performance and impressive financial results, the stock's decline is linked to a trend reversal, decreased trading volume, and concerns about long-term growth and valuation.

As of 28-Jul, Divgi Torqtransfer Systems Ltd's stock price is currently at 959.70, reflecting a decrease of 1.25 (-0.13%). Despite this slight decline, the stock has shown strong performance over various periods, with a 1-week increase of 3.64%, a 1-month rise of 12.53%, and a year-to-date gain of 58.69%. <BR><BR>The stock's recent performance indicates a trend reversal, as it has fallen after two consecutive days of gains. Additionally, today's performance underperformed the sector by 0.34%, and there has been a notable decrease in investor participation, with delivery volume falling by 18.07% compared to the 5-day average. This decline in trading activity may contribute to the stock's current price drop.<BR><BR>On a positive note, the company is net-debt free and has reported impressive growth in net profit of 31.52%, alongside strong quarterly results. However, the long-term growth outlook is concerning due to an annual operating profit decline of 12.80% over the past five years, which may affect investor sentiment. The stock is also considered expensive relative to its peers, trading at a premium with a Price to Book Value of 4.8, despite a strong return of 48.14% over the past year.<BR><BR>In summary, while Divgi Torqtransfer Systems Ltd has demonstrated significant short-term gains and strong financial results, the recent price decline can be attributed to a trend reversal, reduced trading volume, and concerns regarding long-term growth and valuation.

Which are the latest news on Divgi Torq?

What does Divgi Torq do?

Divgi Torqtransfer Systems Ltd is a small-cap company in the auto components industry, recently reporting net sales of 108 Cr and a net profit of 15 Cr for March 2026. It was incorporated in 1964 and became a public limited company in 2022, with a market cap of INR 2,397 Cr.

Overview:<BR>Divgi Torqtransfer Systems Ltd operates in the auto components and equipment industry, classified as a small-cap company.<BR><BR>History:<BR>The company was originally incorporated as Divgi Metalwares Private Limited in 1964 and later changed its name to Divgi Torqtransfer Systems Limited upon becoming a public limited company on March 10, 2022. The latest reported quarterly results show net sales and profit for March 2026.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 108 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 15 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 2,397 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 51.00 <BR>Industry P/E: 36 <BR>Dividend Yield: 0.33% <BR>Debt-Equity: -0.47 <BR>Return on Equity: 7.72% <BR>Price to Book: 3.93 <BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

How big is Divgi Torq?

As of 10th June, Divgi Torqtransfer Systems Ltd has a market capitalization of 2,397.00 Cr, with recent Net Sales of 352.89 Cr and a Net Profit of 46.93 Cr. Shareholder's Funds are 596.77 Cr and Total Assets amount to 660.45 Cr as of March 2025.

As of 10th June, Divgi Torqtransfer Systems Ltd has a market capitalization of 2,397.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 352.89 Cr and a Net Profit of 46.93 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 596.77 Cr and Total Assets of 660.45 Cr.

Who are in the management team of Divgi Torq?

The management team of Divgi Torq includes Chairperson Praveen P Kadle, Managing Director Jitendra B Divgi, Whole-time Director Hirendra Bhaskar Divgi, and several Independent and Non-Executive Directors, along with Company Secretary Sanika Surendra Nirgude, bringing diverse expertise to the company.

The management team of Divgi Torq includes the following individuals:<BR><BR>1. **Praveen P Kadle** - Chairperson<BR>2. **Jitendra B Divgi** - Managing Director<BR>3. **Hirendra Bhaskar Divgi** - Whole-time Director<BR>4. **Pradip Dubhashi** - Independent Director<BR>5. **Pundalik Dinkar Kudva** - Independent Director<BR>6. **Geeta Prafullachandra Tolia** - Independent Director<BR>7. **Sanjay Bhalchandra Divgi** - Non-Executive Director<BR>8. **Bharat Bhalchandra Divgi** - Non-Executive Director<BR>9. **Ajay Limaye** - Non-Executive Director<BR>10. **Sanika Surendra Nirgude** - Company Secretary & Compliance Officer<BR><BR>This team brings a diverse range of expertise and leadership to the company.

Who are the peers of the Divgi Torq?

Divgi Torq's peers include Uniparts India, Carraro India, and Automotive Axles, among others. In terms of performance, Uniparts India leads with a 1-year return of 61.03%, while Divgi Torq has a return of 32.92%.

Peers: The peers of Divgi Torq are Uniparts India, Carraro India, Sundaram Clayton, Automotive Axles, Rane (Madras), Federal-Mogul Go, Rajratan Global, Talbros Auto., and MM Forgings.<BR><BR>Quality Snapshot: Excellent management risk is observed at Carraro India and Automotive Axles, while Average management risk is found at Divgi Torq, Uniparts India, Rane (Madras), Federal-Mogul Go, Talbros Auto., and MM Forgings, and the rest. Good growth is seen at Carraro India, Automotive Axles, and Rajratan Global, while Average growth is noted at MM Forgings, and Below Average growth is present at Divgi Torq, Uniparts India, Sundaram Clayton, Rane (Madras), Talbros Auto., and the rest. Excellent capital structure is noted at Carraro India, Automotive Axles, and Federal-Mogul Go, while Average capital structure is found at MM Forgings, and Below Average capital structure is seen at Sundaram Clayton and Rane (Madras).<BR><BR>Return Snapshot: Uniparts India has the highest 1-year return at 61.03%, while Sundaram Clayton has the lowest at -41.87%. Divgi Torq's 1-year return of 32.92% is significantly higher than Sundaram Clayton's but lower than Uniparts India's. Additionally, Federal-Mogul Go and Automotive Axles have negative six-month returns.

Should I buy, sell or hold Divgi Torqtransfer Systems Ltd?

Are Divgi Torqtransfer Systems Ltd latest results good or bad?

Divgi Torqtransfer Systems Ltd's latest Q4 FY26 results are strong, with a 31.50% increase in net profit and record revenue growth of 18.76%. However, concerns about long-term profitability and low return on equity suggest a cautious outlook for investors.

Divgi Torqtransfer Systems Ltd's latest results for Q4 FY26 can be considered quite strong. The company reported a net profit of ₹15.48 crores, which reflects a significant increase of 31.50% compared to the previous quarter. Additionally, revenue grew by 18.76% to reach an all-time high of ₹107.62 crores, marking the fourth consecutive quarter of sequential growth.<BR><BR>The operating margin also improved to 20.14%, the highest it has been in seven quarters, indicating enhanced operational efficiency. Furthermore, the profit after tax (PAT) margin expanded to 14.38%, up from 12.99% in the prior quarter, showcasing better cost management.<BR><BR>However, while these quarterly results are impressive, there are underlying concerns regarding the company's long-term profitability. Over the past five years, Divgi Torqtransfer has experienced a decline in operating profit at an annual rate of 20.42%, and its return on equity remains low at 6.05%. This raises questions about the sustainability of its growth and the effectiveness of capital allocation.<BR><BR>In summary, while the latest quarterly results are strong and indicate positive momentum, the long-term profitability challenges and valuation concerns suggest a cautious outlook for potential investors.

When is the next results date for Divgi Torqtransfer Systems Ltd?

The next results date for Divgi Torqtransfer Systems Ltd is 25 May 2026.

The next results date for Divgi Torqtransfer Systems Ltd is scheduled for 25 May 2026.

Is Divgi Torq technically bullish or bearish?

As of December 4, 2025, Divgi Torq's technical trend is neutral with mixed signals, showing a recent price increase to 611.00 but overall weak market sentiment and negative long-term returns compared to the Sensex.

As of 4 December 2025, the technical trend has changed from mildly bearish to sideways. The current technical stance for Divgi Torq is neutral, with mixed signals across different time frames. The weekly MACD and Dow Theory indicate mildly bearish conditions, while the daily moving averages show a mildly bullish trend. The KST is bullish on a weekly basis, but the overall sentiment remains tempered by the lack of clear signals from the RSI and Bollinger Bands. The stock has shown a recent price increase, closing at 611.00, up from the previous close of 585.75, but the longer-term returns are negative compared to the Sensex. Overall, the strength of the current stance is weak, reflecting uncertainty in the market.

How has been the historical performance of Divgi Torq?

Divgi Torq has shown a declining trend in key financial metrics over the past five years, with net sales and profits decreasing significantly, while total assets and liabilities have increased. Despite a slight improvement in cash flow from operating activities, the overall performance indicates reduced profitability and sales.

Answer:<BR>The historical performance of Divgi Torq shows a fluctuating trend in key financial metrics over the past five years.<BR><BR>Breakdown:<BR>Divgi Torq's net sales have decreased from 271.04 Cr in Mar'23 to 218.92 Cr in Mar'25, indicating a downward trend. Total operating income followed a similar pattern, declining from 271.04 Cr in Mar'23 to 218.92 Cr in Mar'25. The total expenditure, excluding depreciation, also decreased from 196.56 Cr in Mar'23 to 181.56 Cr in Mar'25. Operating profit (PBDIT) saw a decline from 82.10 Cr in Mar'23 to 58.57 Cr in Mar'25, while profit before tax decreased from 68.83 Cr in Mar'23 to 33.00 Cr in Mar'25. Consequently, profit after tax fell from 51.16 Cr in Mar'23 to 24.39 Cr in Mar'25. The earnings per share (EPS) decreased from 16.73 in Mar'23 to 7.98 in Mar'25. On the balance sheet, total assets increased from 642.00 Cr in Mar'23 to 660.45 Cr in Mar'25, while total liabilities rose from 642.00 Cr to 660.45 Cr in the same period. Cash flow from operating activities improved slightly from 40.00 Cr in Mar'23 to 35.00 Cr in Mar'25, but the net cash outflow was recorded at -16.00 Cr in Mar'25, compared to a net inflow of 26.00 Cr in Mar'24. Overall, Divgi Torq has experienced a decline in profitability and sales, while its asset and liability levels have increased.

Is Divgi Torq overvalued or undervalued?

As of November 12, 2025, Divgi Torq is considered very expensive and overvalued with a PE ratio of 71.35 and low returns on capital, significantly lagging behind its peers and the Sensex.

As of 12 November 2025, the valuation grade for Divgi Torq has moved from expensive to very expensive. The company is currently assessed as overvalued, with a PE ratio of 71.35, an EV to EBITDA of 39.17, and a Price to Book Value of 3.27. These ratios indicate a significant premium compared to its peers, such as Samvardh. Mothe. with a PE of 32.72 and an EV to EBITDA of 11.98, and Bosch, which has a PE of 48.27 and an EV to EBITDA of 43.48.<BR><BR>The company's financial metrics highlight a concerning valuation, especially given its low ROCE of 3.88% and ROE of 4.58%. While Divgi Torq has shown a stock return of 3.29% over the past week compared to the Sensex's 1.21%, its year-to-date return of 4.48% lags behind the Sensex's 8.10%. This underperformance, coupled with its very expensive valuation grade, reinforces the conclusion that Divgi Torq is overvalued in the current market environment.

Who are the top shareholders of the Divgi Torq?

The top shareholders of Divgi Torq include Divgi Holding Private Limited at 51.68%, Oman India Joint Investment Fund II at 12.19%, and mutual funds with a combined 12.74%. Individual investors own 7.78%, while foreign institutional investors hold 1.75%, with promoter pledging at a minimal 0.0003%.

The top shareholders of Divgi Torq include the promoters, with Divgi Holding Private Limited being the largest shareholder at 51.68%. Other significant shareholders are the Oman India Joint Investment Fund II, which holds 12.19%, and mutual funds, which collectively hold 12.74% across three schemes. Additionally, individual investors own 7.78% of the company, while foreign institutional investors (FIIs) hold 1.75% through five different entities. The promoter holdings are notably low in terms of pledging, at just 0.0003%.

Has Divgi Torq declared dividend?

Divgi Torqtransfer Systems Ltd has declared a 52% dividend, amounting to ₹2.6 per share, with an ex-date of July 22, 2024. Despite the dividend announcement, the company has experienced significant price declines, resulting in negative total returns over various periods.

Divgi Torqtransfer Systems Ltd has declared a 52% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 52%<BR>- Amount per share: 2.6<BR>- Ex-date: Jul-22-2024<BR><BR>Dividend Yield: 0.45%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -11.61%, the dividend return was 0%, resulting in a total return of -11.61%.<BR><BR>Over the past year, the price return was -13.4%, the dividend return was 0.37%, leading to a total return of -13.03%.<BR><BR>In the 2-year period, the price return was -26.01%, the dividend return was 0.72%, culminating in a total return of -25.29%.<BR><BR>For the 3-year period, there was no price return, no dividend return, and thus a total return of 0.0%.<BR><BR>In the 4-year period, the price return remained at 0%, with no dividend return, resulting in a total return of 0.0%.<BR><BR>Finally, in the 5-year period, there was again no price return, no dividend return, leading to a total return of 0.0%.<BR><BR>Overall, while Divgi Torq has declared a dividend, the total returns over various periods reflect significant declines in price, indicating a challenging performance despite the dividend announcement.