Divgi TorqTransfer Systems Valuation

Q: What is the Fair Price of DIVGIITTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DIVGIITTS (₹644.65) is trading above our estimate of [[fair value]] (₹127.93)

Is DIVGIITTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DIVGIITTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DIVGIITTS (₹644.65) is trading above our estimate of fair value (₹127.93)

Significantly Below Fair Value: DIVGIITTS is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DIVGIITTS?

Key metric: As DIVGIITTS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DIVGIITTS. This is calculated by dividing DIVGIITTS's market cap by their current earnings.
What is DIVGIITTS's PE Ratio?
PE Ratio	60.9x
Earnings	₹323.83m
Market Cap	₹19.72b

DIVGIITTS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.1x
Enterprise Value/EBITDA	37.6x
PEG Ratio	2.1x

Price to Earnings Ratio vs Peers

How does DIVGIITTS's PE Ratio compare to its peers?

The above table shows the PE ratio for DIVGIITTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.4x
517206 Lumax Industries	16.9x	23.9%	₹21.0b
530759 Sterling Tools	32.6x	n/a	₹21.4b
531147 Alicon Castalloy	24.7x	23.7%	₹18.1b
505160 Talbros Automotive Components	15.4x	n/a	₹18.0b
DIVGIITTS Divgi TorqTransfer Systems	60.9x	29.1%	₹19.7b

Price-To-Earnings vs Peers: DIVGIITTS is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

How does DIVGIITTS's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
513262 Steel Strips Wheels	4.8x	-31.3%	US$379.76m
INNOVATIVE Innovative Tyres & Tubes	0.3x	n/a	US$1.22m
505100 India Radiators	0.8x	n/a	US$94.64k
523415 Coventry Coil-O-Matic (Haryana)	0.9x	n/a	US$88.40k

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DIVGIITTS is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the Indian Auto Components industry average (30.8x).

Price to Earnings Ratio vs Fair Ratio

What is DIVGIITTS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DIVGIITTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	60.9x
Fair PE Ratio	35.4x

Price-To-Earnings vs Fair Ratio: DIVGIITTS is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DIVGIITTS forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₹644.65	₹656.00 +1.8%	3.7%	₹680.00	₹632.00	n/a	2
Nov ’25	₹656.50	₹676.50 +3.0%	6.4%	₹720.00	₹633.00	n/a	2
Oct ’25	₹602.80	₹727.00 +20.6%	1.0%	₹734.00	₹720.00	n/a	2
Sep ’25	₹612.70	₹727.00 +18.7%	1.0%	₹734.00	₹720.00	n/a	2
Aug ’25	₹669.20	₹775.50 +15.9%	7.2%	₹831.00	₹720.00	n/a	2
Jul ’25	₹676.95	₹775.50 +14.6%	7.2%	₹831.00	₹720.00	n/a	2
Jun ’25	₹713.40	₹1,057.00 +48.2%	21.4%	₹1,283.00	₹831.00	n/a	2
May ’25	₹832.85	₹1,209.00 +45.2%	6.1%	₹1,283.00	₹1,135.00	n/a	2
Apr ’25	₹777.85	₹1,209.00 +55.4%	6.1%	₹1,283.00	₹1,135.00	n/a	2
Mar ’25	₹856.05	₹1,209.00 +41.2%	6.1%	₹1,283.00	₹1,135.00	n/a	2
Feb ’25	₹948.15	₹1,276.50 +34.6%	0.5%	₹1,283.00	₹1,270.00	n/a	2

Analyst Forecast: Target price is less than 20% higher than the current share price.

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