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Divgi TorqTransfer Systems Limited (DIVGIITTS) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹26.1B

DT Divgi TorqTransfer Systems Limited DIVGIITTS · NSE
Price₹1,232
Fair Value₹335.72
Upside-72.8%
Quality61/100
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Mixed Growth
Solidly profitable · 13.3% net margin
Low debt · generates free cash flow
0.38% dividend yield
Mixed vs. peers (8/14)
Moderate moat 49/100
Evidence: High Range ₹220.37 – ₹395.72 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Share price +28.4% over the past month.

A solid business, but screening 73% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹395.72). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (3 years)

₹1,232 ₹420.97 Fair Value ₹335.72 Mar 2023 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

41‑month range ₹420.97 – ₹1,232 · fair‑value band ₹220.37 – ₹395.72 · the ₹1,232 price screens above the ₹335.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

Full chart & analysis →

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Analysis

Divgi TorqTransfer Systems Limited (DIVGIITTS) currently trades at ₹1,232, while our model-based Fair Value estimate is ₹335.72, implying the stock looks roughly 72.8% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Consumer Cyclical 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, Divgi TorqTransfer Systems Limited generated revenue of ₹3.5B at a net margin of 13.3%. Revenue grew 84.9% year over year. It earns a return on equity of 7.6%. The balance sheet holds a net cash position of ₹2.9B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹220.37 (bear case) to ₹395.72 (bull case); at ₹1,232, 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 near its 52-week high and 115% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -73%, DIVGIITTS screens richer 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹41.86 to ₹607.92). Read the values as a conservative anchor, not as a price target.
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
Growth DCF ₹179.01 ₹263.93 ₹397.98 80
Residual Income ₹169.72 ₹179.55 ₹196.68 76
Rev-Margin DCF ₹190.88 ₹276.80 ₹396.71 74
All 26 models by family
DCF Models
FCF DCF ₹181.28 ₹254.28 ₹437.66 38
Owner Earnings ₹244.65 ₹398.17 ₹692.62 31
5Y Revenue Exit ₹190.88 ₹281.04 ₹410.67 39
5Y EBITDA Exit ₹258.85 ₹431.65 ₹663.81 41
5Y P/E Exit ₹290.20 ₹501.13 ₹761.01 38
10Y Revenue Exit ₹183.71 ₹270.90 ₹420.02 36
10Y EBITDA Exit ₹233.80 ₹386.01 ₹647.60 37
10Y P/E Exit ₹255.23 ₹439.11 ₹734.98 35
Earnings-Based
Graham-Dodd ₹104.34 ₹607.92 ₹846.04 54
Lynch FV ₹171.96 ₹245.66 ₹319.35 50
PEG = 1.0 ₹171.96 ₹245.66 ₹319.35 46
EPV ₹173.99 ₹186.95 ₹198.28 59
Dividend Discount
Gordon GGM ₹23.87 ₹49.64 ₹78.75 70
DDM Multi-Stage ₹23.87 ₹41.86 ₹52.10 61
Multiples
P/E Multiple ₹253.17 ₹337.56 ₹421.96 63
P/S Multiple ₹103.85 ₹138.46 ₹173.08 58
P/B Multiple ₹195.63 ₹260.85 ₹326.06 55
EV/EBIT ₹276.28 ₹336.28 ₹396.28 53
EV/EBITDA ₹302.32 ₹371.00 ₹439.68 54
EV/Revenue ₹193.21 ₹234.75 ₹276.29 43
Asset-Based
NCAV (Graham) ₹103.89 ₹139.21 ₹207.78 50
Growth DCF
Growth DCF ₹179.01 ₹263.93 ₹397.98 80
Rev-Margin DCF ₹190.88 ₹276.80 ₹396.71 74
Economic Profit
Residual Income ₹169.72 ₹179.55 ₹196.68 76
ROIC Compounder ₹173.99 ₹186.95 ₹198.28 72
Growth Earnings
Growth-Adj P/E ₹258.91 ₹369.87 ₹480.83 68

Widest divergence: DCF Models (₹386.01) versus Dividend Discount (₹41.86). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹3.5B
Revenue growth (YoY) +84.9%
Net margin 13.3%
Return on equity 7.6%
Free cash flow ₹182M FY2026
P/E ratio 55.7
More key figures
Operating margin 13.1%
EPS (TTM) ₹15.31
Dividend yield 0.4%
EPS growth (YoY) +189%
Net cash ₹2.9B FY2026

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

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 91

Profitability 42
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 64
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

Divgi TorqTransfer Systems Limited engages in the manufacture and sale of transfer cases, automatic locking hubs, and synchronizers and components to automotive original equipment manufacturers and other customers.

Full company description

Divgi TorqTransfer Systems Limited engages in the manufacture and sale of transfer cases, automatic locking hubs, and synchronizers and components to automotive original equipment manufacturers and other customers. It offers 4WD transfer cases, including mechanical shift, electrical shift-on-the-Fly, torque on demand, and dual-offset transfer cases; NexTrac Interactive Torque Coupler that senses the torque requirement and transfers the necessary torque to the rear wheels; manual, dual clutch, and electric vehicle transmission components; single, dual, and triple cone synchronizers; and transmission gears, clutch body rings, shafts, and electric vehicle transmission components. It serves customers in the automotive industry, including passenger vehicles, utility vehicles, commercial vehicles, and agricultural machinery. It operates in India, the United States, China, Mexico, the United Kingdom, Germany, Sweden, Thailand, South Korea, and internationally. The company was incorporated in 1964 and is based in Pune, India. Divgi TorqTransfer Systems Limited is a subsidiary of Divgi Holdings Private Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Divgi TorqTransfer Systems Limited reported revenue of ₹3.5B in FY2026 versus ₹2.3B in FY2022, a compound +11.3%/yr. Reported net income was ₹469M in FY2026, compounding +0.4%/yr from FY2022.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹3.5B
Latest YoY
+61.2%
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.
+9.5%
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.
+14.2%
Avg. growth/yr (7Y) 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.
+9.5%
Revenue +11.3%/yr
FY22 ₹2.3B
FY23 ₹2.7B
FY24 ₹2.5B
FY25 ₹2.2B
FY26 ₹3.5B
Net income +0.4%/yr
FY22 ₹462M
FY23 ₹512M
FY24 ₹397M
FY25 ₹244M
FY26 ₹469M

DIVGIITTS screens 73% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Divgi TorqTransfer Systems Limited Fair Value". https://www.fairvalue-calculator.com/stock/DIVGIITTS

Peer Group

Auto Parts · 643 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 61 · Top 25%
Fair Value upside −73% · Bottom 25%
Return on equity (TTM) 8% · Above median
Return on assets 4% · Above median
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth 85% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 55.7× · Pricier than 75% of peers
P/B 4.11× · Pricier than 75% of peers
P/S (TTM) 7.40× · Pricier than 75% of peers
P/FCF 1.5× · Cheaper than median
EV/EBITDA 33.1× · Pricier than 75% of peers

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 17
FUTURE 100 · sector 24
PAST 30 · sector 26
HEALTH 100 · sector 95
DIVIDEND 8 · sector 30

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.

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Frequently asked questions

Is Divgi TorqTransfer Systems Limited (DIVGIITTS) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹335.72 versus a price of ₹1,232, about −73% (overvalued).
What is the fair value of DIVGIITTS?
Our model-based fair value for Divgi TorqTransfer Systems Limited is ₹335.72 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹1,232.
What is the quality score of DIVGIITTS?
Divgi TorqTransfer Systems Limited has a Quality Score of 61/100. 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 Divgi TorqTransfer Systems Limited (DIVGIITTS)?
Divgi TorqTransfer Systems Limited reported trailing-twelve-month revenue of about ₹3.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of DIVGIITTS?
The net profit margin of Divgi TorqTransfer Systems Limited is about 13.3%, meaning it keeps roughly 13.3% of revenue as net income. Based on the latest reported figures.
Does Divgi TorqTransfer Systems Limited pay a dividend?
Divgi TorqTransfer Systems Limited currently shows a dividend yield of about 0.38% 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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