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Diffusion Engineers Limited (DIFFNKG) Fair Value & Analysis

Industrials · IN · Market cap ₹14.4B

DE Diffusion Engineers Limited DIFFNKG · NSE
Price₹362.60
Fair Value₹230.43
Upside-36.5%
Quality53/100
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Expensive Growth
Solidly profitable · 12.4% net margin
Low debt · negative free cash flow
0.39% dividend yield
Ranks above peers (8/13)
Moderate moat 54/100
Evidence: High Range ₹172.82 – ₹288.03 Share as image

Fair value as of: Aug 2, 2026

From 17 valuation models · updated 11 days ago

Share price −8.4% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹288.03). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (22 months)

₹487.35 ₹202.20 Fair Value ₹230.43 Oct 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

22‑month range ₹202.20 – ₹487.35 · fair‑value band ₹172.82 – ₹288.03 · the ₹362.60 price screens above the ₹230.43 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Diffusion Engineers Limited (DIFFNKG) currently trades at ₹362.60, while our model-based Fair Value estimate is ₹230.43, implying the stock looks roughly 36.5% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Diffusion Engineers Limited generated revenue of ₹4.1B at a net margin of 12.4%. Revenue grew 38.2% year over year. It earns a return on equity of 13.0%. The balance sheet holds a net cash position of ₹689M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹172.82 (bear case) to ₹288.03 (bull case); at ₹362.60, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 67% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -36%, DIFFNKG screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹101.98 ₹125.06 ₹309.77 76
ROIC Compounder ₹125.27 ₹168.29 ₹206.03 72
Gordon GGM ₹13.88 ₹28.85 ₹45.77 70
All 17 models by family
DCF Models
Owner Earnings ₹93.62 ₹175.47 ₹343.66 31
Earnings-Based
Graham-Dodd ₹92.17 ₹617.34 ₹864.84 54
Lynch FV ₹180.66 ₹258.08 ₹335.50 50
PEG = 1.0 ₹180.66 ₹258.08 ₹335.50 46
EPV ₹117.79 ₹133.04 ₹146.38 59
Dividend Discount
Gordon GGM ₹13.88 ₹28.85 ₹45.77 70
DDM Multi-Stage ₹13.88 ₹24.33 ₹30.28 61
Multiples
P/E Multiple ₹213.48 ₹284.65 ₹355.81 63
P/S Multiple ₹164.29 ₹219.05 ₹273.81 58
P/B Multiple ₹172.82 ₹230.43 ₹288.03 55
EV/EBIT ₹199.01 ₹256.59 ₹314.17 53
EV/EBITDA ₹176.35 ₹226.37 ₹276.39 54
EV/Revenue ₹149.56 ₹202.40 ₹255.24 43
Asset-Based
NCAV (Graham) ₹54.55 ₹73.10 ₹109.10 50
Economic Profit
Residual Income ₹101.98 ₹125.06 ₹309.77 76
ROIC Compounder ₹125.27 ₹168.29 ₹206.03 72
Growth Earnings
Growth-Adj P/E ₹250.96 ₹358.52 ₹466.07 68

Widest divergence: Growth Earnings (₹358.52) versus Dividend Discount (₹24.33). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹4.1B
Revenue growth (YoY) +38.2%
Net margin 12.4%
Return on equity 13.0%
Free cash flow −₹126M FY2026
P/E ratio 28.7
More key figures
Operating margin 13.3%
EPS (TTM) ₹13.55
Dividend yield 0.4%
EPS growth (YoY) +22.9%
Net cash ₹689M FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 53 · Market factors (momentum, volatility) 56

Profitability 51
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 18
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Diffusion Engineers Limited manufactures and sells welding consumables, wear plates and parts, and heavy engineering equipment for various industries in India and internationally. The company provides specialized and customized repairs and reconditioning services for heavy machinery and equipment.

Full company description

Diffusion Engineers Limited manufactures and sells welding consumables, wear plates and parts, and heavy engineering equipment for various industries in India and internationally. The company provides specialized and customized repairs and reconditioning services for heavy machinery and equipment. It also trades in anti-wear powders, and welding and cutting machinery. The company was incorporated in 1982 and is based in Nagpur, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Diffusion Engineers Limited reported revenue of ₹4.1B in FY2026 versus ₹2.0B in FY2022, a compound +19.0%/yr. Reported net income was ₹503M in FY2026, compounding +31.1%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹4.1B
Latest YoY
+21.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.5%
Avg. growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.0%
Revenue +19.0%/yr
FY22 ₹2.0B
FY23 ₹2.5B
FY24 ₹2.8B
FY25 ₹3.4B
FY26 ₹4.1B
Net income +31.1%/yr
FY22 ₹170M
FY23 ₹222M
FY24 ₹307M
FY25 ₹359M
FY26 ₹503M

DIFFNKG screens 36% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Diffusion Engineers Limited Fair Value". https://www.fairvalue-calculator.com/stock/DIFFNKG

Peer Group

Specialty Industrial Machinery · 805 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Below median
Fair Value upside −37% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 13% · Above median
Revenue growth 38% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 28.7× · Cheaper than median
P/B 3.56× · Pricier than median
P/S (TTM) 3.55× · Pricier than median
EV/EBITDA 23.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 23
PAST 52 · sector 28
HEALTH 100 · sector 96
DIVIDEND 8 · sector 24

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
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Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Diffusion Engineers Limited (DIFFNKG) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹230.43 versus a price of ₹362.60, about −36% (overvalued).
What is the fair value of DIFFNKG?
Our model-based fair value for Diffusion Engineers Limited is ₹230.43 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹362.60.
What is the quality score of DIFFNKG?
Diffusion Engineers Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Diffusion Engineers Limited (DIFFNKG)?
Diffusion Engineers Limited reported trailing-twelve-month revenue of about ₹4.1B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of DIFFNKG?
The net profit margin of Diffusion Engineers Limited is about 12.4%, meaning it keeps roughly 12.4% of revenue as net income. Based on the latest reported figures.
Does Diffusion Engineers Limited pay a dividend?
Diffusion Engineers Limited currently shows a dividend yield of about 0.39% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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