BSE: 543812 | NSE: DIVGIITTS | Engineering | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Divgi Torqtransfer Systems Ltd is a good quality company.
The key valuation ratios of Divgi Torqtransfer Systems 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 Divgi Torqtransfer Systems Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 20.2% | 12.9% | 45.5% | 32% | 29.9% | 17.2% | 19% | 19.7% | 15.5% | 9.6% | - |
| Value Creation Index ⓘ | 0.4 | -0.1 | 2.3 | 1.3 | 1.1 | 0.2 | 0.4 | 0.4 | 0.1 | -0.3 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 13.7 | 9.5 | 133 | 159 | 187 | 159 | 187 | 234 | 271 | 253 | 236 |
| Sales YoY Gr. | - | -30.5% | 1,298.2% | 19.8% | 17.2% | -14.9% | 17.3% | 25.3% | 15.9% | -6.5% | - |
| Adj EPS ⓘ | 2 | 1.2 | 9.1 | 11.5 | 18.1 | 11.1 | 13.9 | 16.4 | 16.6 | 13 | 10.6 |
| YoY Gr. | - | -40.2% | 643.4% | 26.7% | 57.8% | -39% | 25.4% | 18.5% | 1.2% | -21.8% | - |
| BVPS (₹) ⓘ | 9.4 | 10.7 | 33 | 44.7 | 107.6 | 87 | 107.5 | 123.5 | 180.3 | 189.8 | 191.6 |
| Adj Net Profit ⓘ | 3.9 | 2.3 | 19.6 | 24.8 | 39.1 | 26.6 | 38.2 | 45.3 | 50.9 | 39.8 | 32 |
| Cash Flow from Ops. ⓘ | 1.2 | 1.3 | 33.2 | 19.9 | 46 | 38.4 | 27 | 51.1 | 40.8 | 32.5 | - |
| Debt/CF from Ops. ⓘ | 5.8 | 3.4 | 2.2 | 2.4 | 0 | 1.3 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 38.3% | 6.3% | 10.8% | -6.5% | ||||
| Adj EPS ⓘ | 22.9% | -6.4% | -2.1% | -21.8% | ||||
| BVPSⓘ | 39.6% | 12% | 20.9% | 5.3% | ||||
| Share Price | - | - | - | -31.2% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 24.4 | 12.2 | 42.7 | 29.6 | 23.7 | 12 | 15.1 | 14.2 | 11.4 | 7 | 5.6 |
| Op. Profit Mgn % ⓘ | 2.4 | -24.9 | 26.3 | 28.3 | 28.9 | 23.5 | 28 | 28.2 | 27.5 | 21.1 | 19.5 |
| Net Profit Mgn % ⓘ | 28.6 | 24.6 | 14.7 | 15.5 | 20.9 | 16.8 | 20.5 | 19.4 | 18.8 | 15.7 | 13.7 |
| Debt to Equity ⓘ | 0.4 | 0.2 | 1 | 0.5 | 0 | 0.2 | 0 | 0 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 179 | 210 | 67 | 127 | 128 | 143 | 147 | 144 | 143 | 177 | 289 |
| Cash Conv. Cycle ⓘ | 69 | 51 | 4 | 36 | 51 | 50 | 36 | 43 | 47 | 73 | 249 |
Sales growth is growing at healthy rate in last 3 years 10.75%
Return on Equity has declined versus last 3 years average to 5.60%
Net Profit has been subdued in last 3 years -2.11%
Sales growth is not so good in last 4 quarters at -9.59%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 10.6 | 4.2 |
| TTM Sales (₹ Cr.) | 236 | 56.3 |
| BVPS (₹.) ⓘ | 191.6 | 0 |
| Reserves (₹ Cr.) ⓘ | 571 | 43 |
| P/BV ⓘ | 3.64 | 0.00 |
| PE ⓘ | 65.93 | 166.00 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 571.10 / 1072.75 |
| All Time Low / High (₹) | 557.20 / 1149.00 |
| Market Cap (₹ Cr.) | 2,135 |
| Equity (₹ Cr.) | 15.3 |
| Face Value (₹) | 5 |
| Industry PE ⓘ | 48.6 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 14 | 10 | 133 | 159 | 187 | 159 | 187 | 234 | 271 | 253 |
| Operating Expenses ⓘ | 13 | 12 | 98 | 114 | 133 | 122 | 135 | 168 | 196 | 200 |
| Manufacturing Costs | 3 | 3 | 25 | 35 | 39 | 33 | 33 | 41 | 49 | 54 |
| Material Costs | 5 | 3 | 48 | 54 | 67 | 58 | 67 | 94 | 111 | 106 |
| Employee Cost | 4 | 5 | 14 | 15 | 16 | 17 | 22 | 23 | 24 | 24 |
| Other Costs ⓘ | 1 | 1 | 11 | 11 | 11 | 13 | 13 | 11 | 12 | 16 |
| Operating Profit ⓘ | 0 | -2 | 35 | 45 | 54 | 37 | 52 | 66 | 75 | 53 |
| Operating Profit Margin (%) | 2.4% | -24.9% | 26.3% | 28.3% | 28.9% | 23.3% | 27.9% | 28.2% | 27.5% | 21.0% |
| Other Income ⓘ | 5 | 6 | 6 | 5 | 9 | 12 | 8 | 8 | 8 | 20 |
| Interest ⓘ | 1 | 1 | 7 | 7 | 1 | 5 | 0 | 0 | 0 | 1 |
| Depreciation ⓘ | 1 | 1 | 3 | 4 | 6 | 6 | 8 | 11 | 13 | 19 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 4 | 2 | 31 | 40 | 56 | 38 | 53 | 62 | 69 | 54 |
| Tax ⓘ | 0 | 0 | 11 | 15 | 15 | 10 | 15 | 16 | 18 | 14 |
| Profit After Tax | 4 | 2 | 20 | 25 | 40 | 28 | 38 | 46 | 51 | 40 |
| PAT Margin (%) | 28.6% | 24.6% | 15.0% | 15.8% | 21.6% | 17.6% | 20.4% | 19.7% | 18.9% | 15.7% |
| Adjusted EPS (₹) | 2.0 | 1.2 | 9.3 | 11.7 | 18.7 | 11.4 | 13.8 | 16.8 | 16.7 | 13.0 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% | 0% | 6% | 6% | 20% | 20% | 20% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 18 | 20 | 71 | 96 | 234 | 210 | 296 | 340 | 551 | 580 |
| Share Capital ⓘ | 5 | 5 | 5 | 5 | 7 | 6 | 7 | 14 | 15 | 15 |
| Reserves ⓘ | 13 | 16 | 66 | 91 | 227 | 204 | 289 | 326 | 536 | 565 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 6 | 4 | 2 | 49 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Debt | 1 | 1 | 2 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short Term Debt | 5 | 3 | 0 | 48 | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade Payables | 2 | 3 | 22 | 24 | 20 | 23 | 40 | 40 | 46 | 38 |
| Others Liabilities ⓘ | 5 | 5 | 84 | 16 | 24 | 71 | 27 | 26 | 44 | 23 |
| Total Liabilities ⓘ | 32 | 32 | 179 | 185 | 279 | 304 | 363 | 405 | 642 | 641 |
Fixed Assets | ||||||||||
| Gross Block | 28 | 29 | 105 | 125 | 136 | 153 | 176 | 194 | 212 | 339 |
| Accumulated Depreciation | 22 | 23 | 50 | 54 | 57 | 64 | 71 | 82 | 95 | 111 |
| Net Fixed Assetsⓘ | 6 | 6 | 55 | 72 | 78 | 89 | 105 | 112 | 117 | 227 |
| CWIP ⓘ | 0 | 0 | 4 | 2 | 9 | 6 | 6 | 28 | 93 | 26 |
| Investmentsⓘ | 2 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventories | 1 | 1 | 12 | 20 | 20 | 21 | 27 | 30 | 32 | 36 |
| Trade Receivables | 4 | 2 | 29 | 37 | 38 | 23 | 55 | 53 | 73 | 63 |
Cash Equivalents  ⓘ
| 16 | 20 | 71 | 47 | 125 | 150 | 159 | 173 | 311 | 264 |
| Others Assetsⓘ | 2 | 2 | 7 | 7 | 8 | 14 | 11 | 9 | 16 | 25 |
| Total Assets ⓘ | 32 | 32 | 179 | 185 | 279 | 304 | 363 | 405 | 642 | 641 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 1 | 1 | 33 | 20 | 46 | 38 | 27 | 51 | 41 | 32 |
| PBT ⓘ | 4 | 2 | 31 | 40 | 56 | 38 | 53 | 62 | 69 | 54 |
| Adjustment ⓘ | -3 | -4 | 5 | 7 | 0 | 2 | 4 | 5 | 6 | 0 |
| Changes in Working Capital ⓘ | 0 | 3 | 5 | -14 | 5 | 10 | -17 | -1 | -17 | -7 |
| Tax Paid ⓘ | 0 | 0 | -8 | -13 | -15 | -12 | -12 | -16 | -17 | -14 |
| Cash Flow From Investing Activity ⓘ | 3 | 5 | -125 | 7 | -90 | -24 | -25 | -51 | -213 | 6 |
| Capex | -2 | -1 | -14 | -18 | -22 | -13 | -26 | -40 | -68 | -78 |
| Net Investments | 0 | 0 | -115 | 22 | -74 | -16 | -9 | -17 | -151 | 74 |
| Others ⓘ | 5 | 6 | 4 | 3 | 6 | 5 | 10 | 6 | 6 | 10 |
| Cash Flow From Financing Activityⓘ | -2 | -3 | 83 | -30 | 48 | -6 | -3 | -3 | 160 | -12 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 30 | 0 | 0 | 0 | 0 | 0 | 169 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 72 | 0 | -1 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | -1 | -1 | -7 | -6 | -1 | 0 | 0 | 0 | 0 | 0 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 | -4 | -2 | -2 | -9 | -10 |
| Others ⓘ | -2 | -2 | -12 | -25 | 49 | -1 | -1 | -1 | -1 | -1 |
| Net Cash Flow ⓘ | 1 | 4 | -9 | -3 | 4 | 8 | 0 | -3 | -13 | 27 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 24.39 | 12.17 | 43.63 | 30.19 | 24.53 | 12.7 | 15.05 | 14.52 | 11.48 | 7.02 |
| ROCE (%) | 20.21 | 12.87 | 45.47 | 32 | 29.86 | 17.15 | 19.01 | 19.66 | 15.53 | 9.56 |
| Asset Turnover Ratio | 0.49 | 0.32 | 1.35 | 0.89 | 0.81 | 0.55 | 0.56 | 0.61 | 0.52 | 0.39 |
| PAT to CFO Conversion(x) | 0.25 | 0.5 | 1.65 | 0.8 | 1.15 | 1.36 | 0.71 | 1.11 | 0.8 | 0.8 | Working Capital Days |
| Receivable Days | 108 | 105 | 39 | 74 | 73 | 70 | 76 | 84 | 85 | 98 |
| Inventory Days | 24 | 28 | 16 | 37 | 39 | 47 | 46 | 44 | 42 | 49 |
| Payable Days | 180 | 297 | 96 | 157 | 122 | 136 | 171 | 155 | 141 | 144 |
Divgi TorqTransfer Systems was originally incorporated as ‘Divgi Metalwares Private Limited’, a private limited company under the Companies Act, 1956 through certificate of incorporation dated December 16, 1964 issued by the RoC. Pursuant to an amendment to the Companies Act, 1956, the company was deemed public under Section 43A(1A) of the Companies Act, 1956. Consequently, the word private was deleted from the name of the company and its name was changed to “Divgi Metalwares Limited” with effect from July 1, 1996. The name of the company was further changed to “Divgi Metalwares Private Limited” upon insertion of the word ‘Private’ after the company was converted into a private limited company pursuant to an amendment to Section 43A(1A) in Companies Act, 1956 by Companies Amendment Act, 2000 with effect from November 23, 1998 and subsequently, a fresh certificate of incorporation dated October 26, 1999 was issued by the RoC.
Divgi Transmission Private Limited was incorporated on September 18, 1995. Pursuant to the special resolution dated September 20, 1995, the name of Divgi Transmission Private Limited was changed to “Divgi Warner Private Limited” and a fresh certificate of incorporation was issued on November 8, 1995. The name was further changed to “Divgi TorqTransfer Systems Private Limited” pursuant to the buyout of shares from BorgWarner and a fresh certificate of incorporation was issued on September 30, 2016.
Pursuant to an order passed by the National Company Law Tribunal, Mumbai Bench on September 21, 2017, the erstwhile Divgi TorqTransfer Systems Private Limited amalgamated with the company i.e. Divgi Metalwares Private Limited and subsequently, the name of the company changed from “Divgi Metalwares Private Limited” to “Divgi TorqTransfer Systems Private Limited” and a fresh certificate of incorporation dated November 24, 2017 was issued by the RoC. The erstwhile Divgi TorqTransfer Systems Private Limited was a wholly owned subsidiary of the company i.e., Divgi Metalwares Private Limited. Thereafter, pursuant to a special resolution passed by its shareholders on October 18, 2021, the company was converted to a public limited company and its name was changed to “Divgi TorqTransfer Systems Limited”. A fresh certificate of incorporation dated March 10, 2022 consequent upon change of name was issued by the RoC.
The company was established in 1964 as a small-scale manufacturing enterprise specializing in the manufacturing of gears and screwed machined parts. Serial entrepreneurship combined with a robust foundation in gear technology and manufacturing enabled the founding members, Ramarao and Bhaskar Divgi to carve a niche for themselves in a daunting marketplace that was strife with uncertainty and complexities of that era.
The company has an in-house software development capability, which helps it in providing system level solutions offering software that controls the vehicle dynamics. It is also one of the first few suppliers of steel and carbon-based synchronizer systems for the Indian markets, and are one of the leading manufacturers of steel synchronizers in India. It has achieved leading positions for select products in its portfolio through focus on innovation; offering of customized solutions in distinctive products; in-house software development capability; and product development and production at quality standards acceptable to its clients and at optimized costs. It is in the process of launching domestically manufactured DCT systems for the Indian market. Therefore, it will be the only manufacturer of DCT systems in India. Very few component suppliers as well as OEMs globally have the capability to develop the system integration software solutions in-house.
The company has a diverse portfolio of products which includes mechanical as well as electrical 4×4 transfer cases, interactive torque couplers, dual & triple cone steel synchronizers, dual clutch automatic transmissions, 5 & 6 speed manual transmissions and single speed electric vehicle (EV) transmission.
Business area of the company
The company is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India. It is also the only player manufacturing and exporting transfer cases to global OEMs from India, and the only manufacturer of torque couplers in India. It also has the capability to develop and provide transmission systems for EVs.
Products of the company
Torque Transfer Systems
Manual Transmission
Synchronizer Systems
Dual Clutch Transmission
Transmissions for Battery Electric Vehicles
Components
Awards, accreditations or recognition
History and milestones
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