Divgi Torq (DIVGIITTS)
Fast GrowerFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,301.05 |
| Market Cap | ₹3,978.99 Cr |
| P/E Ratio | 84.76 |
| ROCE | 5.69% |
| ROE | 6.28% |
| Dividend Yield | 0.25% |
| Profit Growth | 182.67% |
| Debt/Equity | 0 |
| Sales Growth | 78.64% |
| Promoter Holding | 60.56% |
| 52-Week Range | ₹573.7 — ₹1,325.7 |
| Sector | Auto Components |
| Book Value | ₹207.7 |
Strengths
- Zero debt on the balance sheet provides strong financial resilience.
- Promoter holding of 60.56% indicates significant skin in the game.
- Exceptional recent growth: sales up 72.58% and profit up 124.62%.
- Piotroski F-score of 7/9 points to improving fundamentals.
- PEG ratio of 0.61 suggests growth is less expensive if sustained.
Concerns
- High P/E of 60.02 and P/B of 3.94 leave little room for valuation error.
- ROE of 6.28% and ROCE of 5.69% are mediocre against the rich price paid.
- Dividend yield of only 0.36% gives negligible downside support.
- Price has fallen sharply from ₹1,310 to ₹730.55, reflecting volatility or market skepticism.
AI Analysis
Looking at Divgi Torq, I start with the balance sheet. Zero debt and 60.56% promoter holding are genuine positives; this is not a house of cards. But my mentor taught me that growth is only as valuable as the equity it earns. Here I see ROE of 6.28% and ROCE of 5.69%. On ₹185 of book value, the company earns a little over ₹11 per share. At ₹730.55, I am asked to pay 60 times earnings and almost four times book for a business earning single-digit returns on capital. That is a combination I have rarely seen work out. The recent numbers are eye-catching: sales up 72.58%, profit up 124.62%, and a Piotroski score of 7/9 suggests genuine improvement. Yet the latest quarter's ₹91 Cr sales and ₹12 Cr profit still imply a young earnings base. A 124% profit jump from a low base can look very different after a full cycle. The stock has already fallen from ₹1,310 to ₹730.55, a reminder that hot stories can cool quickly. I do not invest based on what a company did last quarter; I invest based on what it will earn over decades. With a dividend yield of only 0.36%, income support is meaningless here. If Divgi can translate this order momentum into durable double-digit ROCE, there may be a wonderful business underneath. But at ₹730.55, the price gives me no margin of safety. In Graham's words, margin of safety is the central concept of investing. I will wait, watch, and demand proof that returns on capital improve before I let my capital join the queue.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer