Divgi Torqtransfer Systems Ltd. share price target

We cut our estimates by 5-25% over the forecast period to factor in the headwinds in the legacy transfer case business and slowdown in the EV business. Further, we downgrade our rating from HOLD to REDUCE with a TP of Rs408 (previous Rs637), valuing it at a P/E of 30x on its Dec'26 EPS. Divgi Torqtransfer Systems (DIVGIITT) reported 7th consecutive quarter of degrowth in revenue, indicating persistent challenges across core and new business segments. Its Q3FY25 revenue declined by 16.5% YoY, against the anticipated de-growth of 8%/11% (PLe/BBGe). Gross profit declined by 5% YoY, but gross margin expanded by 776bps YoY to 62.7% (PLe: 50.8%). EBITDA...

Issue Snapshot: Issue Open: Mar 01 Mar 03, 2023 Price Band: Rs. 560 590 *Issue Size: 412.12 cr (Fresh Issue of Rs 180 cr + offer for sale of 3,934,243 eq sh) Reservation for: QIB atleast 75% eq sh Non-Institutional upto 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail upto 10% eq sh Face Value: Rs 5 Book value: Rs 129.38 (September 30, 2022) Bid size: - 25 equity shares and in multiples thereof 100% Book built Issue IPO Note- Divgi Torqtransfer Systems Limited

IPO NOTE