Diffusion Engineers
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Diffusion Engineers share price

Diffusion Engineers Ltd.

NSE: DIFFNKG BSE: 544264 SECTOR: Electrodes & Welding Equipment  30k   13   0

318.05
-5.45 (-1.68%)
BSE: 21 Jan 04:01 PM

Price Summary

Today's High

₹ 328.15

Today's Low

₹ 314.9

52 Week High

₹ 489.3

52 Week Low

₹ 188

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationAttractive
The stock is considerably attractive based on intrinsic value.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsVery Stable
The company possesses stable growth history and manageable debt.
*It is just an analytical rating of the company and not an investment advice.

Company Essentials

Market Cap

₹ 1190.34 Cr.

Enterprise Value

₹ 1221.5 Cr.

No. of Shares

3.74 Cr.

P/E

50.88

P/B

3.4

Face Value

₹ 10

Div. Yield

0.16 %

Book Value (TTM)

₹  93.65

CASH

₹ 2.55 Cr.

DEBT

₹ 33.71 Cr.

Promoter Holding

69.7 %

EPS (TTM)

₹  6.25

Sales Growth

5.35%

ROE

14.85 %

ROCE

16.83%

Profit Growth

39.12 %

Add Your Ratio

* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

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Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.

PE Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

PB Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

* The chart is based on the standalone earnings of the company. * Negative values and values more than 1000x in PE chart is considered 0.

Peer Comparison

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* The Peers list includes companies operating in the same industry and having comparable market cap.

 Group Companies

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Ratios

Sales Growth

1 Year5.35%
3 Year19.07%
5 Year11.05%

Profit Growth

1 Year38.21%
3 Year30.5%
5 Year18.82%

ROE%

1 Year14.85%
3 Year13.95%
5 Year12.43%

ROCE %

1 Year16.83%
3 Year16.07%
5 Year14.89%

Debt/Equity

0.189

Price to Cash Flow

37.71

Interest Cover Ratio

19.6773

CFO/PAT (5 Yr. Avg.)

0.700098017439903

Shareholding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2024 69.70 0.00
Investors List
* Figures given above are % of equity capital

 Strengths

  • The company has shown a good profit growth of 30.7863110153587% for the Past 3 years.
  • The company has shown a good revenue growth of 19.0713263985441% for the Past 3 years.
  • Company has a healthy Interest coverage ratio of 19.6773.
  • The company has a high promoter holding of 69.7%.

 Limitations

  • The company is trading at a high EV/EBITDA of 32.9969.

Quarterly Result (All Figures in Cr.)

PARTICULARS Jun 2024 Sep 2024
Net Sales 67.26 74.32
Total Expenditure 59.33 63.44
Operating Profit 7.94 10.88
Other Income 2.72 1.43
Interest 0.61 0.67
Depreciation 1.29 1
Exceptional Items -0.02 -0.13
Profit Before Tax 8.75 10.51
Tax 2.29 1.8
Profit After Tax 6.46 8.72
Adjusted EPS (Rs) 2.31 3.11

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Net Sales 146.35 152.31 195.76 244.07 257.13
Total Expenditure 130.98 133.23 174.11 219.71 226.86
Operating Profit 15.37 19.08 21.65 24.36 30.27
Other Income 2.21 1.75 4.15 3.78 7.19
Interest 1.9 1.9 1.35 2.22 1.7
Depreciation 3.05 3.74 3.84 3.38 3.86
Exceptional Items 0 0 0 0 -0.26
Profit Before Tax 12.62 15.2 20.62 22.55 31.66
Tax 3.56 4.74 4.87 5.73 8.26
Net Profit 9.06 10.46 15.76 16.82 23.24
Adjusted EPS (Rs.) 3.46 4 6.02 6.43 8.35

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Equity and Liabilities
Share Capital 3.74 3.74 3.74 3.74 28.02
Total Reserves 92.02 101.17 117.22 132.93 150.3
Borrowings 11.63 5.56 2.8 1.67 0
Other N/C liabilities 3.4 4.12 3.59 4.12 5.81
Current liabilities 58.03 39.83 58.28 81.46 75.57
Total Liabilities 168.83 154.42 185.62 223.92 259.7
Assets
Net Block 60.3 55.66 58.45 60.83 88.22
Capital WIP 0 0 0 1.83 1.11
Intangible WIP 0 0 0 0 0
Investments 17.03 16.36 23.94 21.23 29.54
Loans & Advances 4.76 4.56 1.12 1.24 1.43
Other N/C Assets 0 0 4.75 5.17 4.75
Current Assets 86.73 77.85 97.36 133.63 134.65
Total Assets 168.83 154.42 185.62 223.92 259.7
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Profit from operations 12.62 15.2 20.62 22.55 31.66
Adjustment 8.64 0.32 2.95 4.92 1.12
Changes in Assets & Liabilities -6.68 4.61 -13.81 -38.86 5.35
Tax Paid -2.97 0 -4.25 -4.57 -6.56
Operating Cash Flow 11.61 20.12 5.51 -15.96 31.57
Investing Cash Flow -26.38 2.16 -10.09 -3.81 -33.45
Financing Cash Flow 14.04 -18.95 2.54 19.65 2.57
Net Cash Flow -0.73 3.33 -2.04 -0.12 0.69

Corporate Actions

Investors Details

PARTICULARS Dec 2024%
promoters 69.70
chitra garg 16.38
n k garg huf 5.57
neelu prashant garg 0.06
nitin garg 19.78
prashant garg 27.91
PARTICULARS Dec 2024%
investors 30.30
3p india equity fund 1 5.33
hdfc mutual fund - hdfc d... 3.21
shree capital services lt... 2.28

Annual Reports

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Ratings & Research Reports

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Company Presentations

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Diffusion Engineers Stock Price Analysis and Quick Research Report. Is Diffusion Engineers an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Diffusion Engineers . 

  • PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Diffusion Engineers has a PE ratio of 50.823868181091 which is high and comparatively overvalued .

  • Share Price: - The current share price of Diffusion Engineers is Rs 317.7. One can use valuation calculators of ticker to know if Diffusion Engineers share price is undervalued or overvalued.

  • Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Diffusion Engineers has ROA of 9.6751 % which is a bad sign for future performance. (higher values are always desirable)

  • Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Diffusion Engineers has a Current ratio of 1.7818 .

  • Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Diffusion Engineers has a ROE of 14.8548 % .(higher is better)

  • Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Diffusion Engineers has a Debt to Equity ratio of 0.189 which means that the company has low proportion of debt in its capital.

  • Sales growth: - Diffusion Engineers has reported revenue growth of 5.3476 % which is poor in relation to its growth and performance. 

  • Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Diffusion Engineers for the current financial year is 11.7728273297916 %.

  • Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Diffusion Engineers is Rs 0.5 and the yield is 0.1572 %.

  • Earnings Per Share: - It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Diffusion Engineers is Rs 6.251 . The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Diffusion Engineers in Ticker for free. Also, one can get the intrinsic value of Diffusion Engineers by using Valuation Calculators, which are available with a Finology ONE subscription. 

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Brief about Diffusion Engineers

Diffusion Engineers Share Price and Analysis of the Company

Diffusion Engineers Limited has been a pioneer in providing engineering solutions for over four decades. The company specializes in manufacturing special welding consumables, wear plates, and heavy engineering equipment. They also offer customized repairs and reconditioning services for heavy machinery, making them a crucial player in core industries like cement, steel, power, mining, and oil & gas.

Their innovative super conditioning process significantly enhances wear resistance, reduces stress, and extends the lifespan of industrial parts, thereby improving the efficiency of machinery and lowering production costs.

Diffusion Engineers shares listed via IPO with 15.18% gain on 4 October 2024. Track all the New Listed IPOs for free on Ticker.  

Business Model of Diffusion Engineers

Diffusion Engineers operates with a diversified portfolio targeting core industries:

  • Welding Consumables: Manufacturing electrodes, wires, and fluxes essential for industries requiring heavy machinery.
  • Wear Plates and Wear Parts: Customised protective parts used in industries like mining, cement, and power to withstand heavy wear.
  • Heavy Engineering Machinery: Production of rugged machines for material transportation, crushing, and grinding.
  • Repair and Reconditioning Services: Revitalisation of heavy machinery components to extend operational life.
  • Trading of Anti-wear Powders: Providing anti-wear powders to enhance surface resistance.
  • Welding and Cutting Machinery: Equipment for metal fabrication and processing.

Industry Overview

Global Welding Consumables Market

  • Estimated growth at a CAGR of 4.5%-5.5% globally.
  • Asia-Pacific contributes 41% of the global market share.

Wear Plates Market

  • Global market size in 2023: $3.6 billion, projected to grow at a CAGR of 5%-6%.
  • In India, the wear plates market is expected to grow at a CAGR of 8%-9%, reaching Rs 28 billion by FY27.

Heavy Engineering Industry in India

  • Current market size: Rs 3,100-3,200 billion (FY24).
  • Projected CAGR: 7.5%-8.5% to reach Rs 3,800-3,900 billion by FY27.

Revenue Segmentation of Diffusion Engineers

The company generated Rs 2,571.26 million in FY24, with the following sector-wise revenue distribution:

  • Cement: Rs 942.59 million (36.66%)
  • Engineering: Rs 357.93 million (13.92%)
  • Steel: Rs 332.12 million (12.92%)
  • Power: Rs 188.02 million (7.31%)
  • Sugar: Rs 114.97 million (4.47%)
  • Others: Rs 635.63 million (24.72%)

Competitive Strengths

  1. Diversified Product Portfolio: From welding consumables to wear plates, the company caters to multiple industries.
  2. Long-Standing Client Relationships: Served 503 customers in FY24, showcasing a broad customer base.
  3. Forward Integration: Captive consumption of 20.25% of special electrodes and 77.01% of flux-cored wire enhances production efficiency.
  4. Consistent Growth: Revenue CAGR of 10.26% and PAT CAGR of 11.14% over the last 11 years.

Risk Factors

  1. Dependence on Raw Material Costs: Volatility in raw material prices could impact margins.
  2. Sector Dependency: Performance tied to core industries like cement and power.
  3. Negative Cash Flows: Historical negative cash flows in certain fiscal years.
  4. Reliance on Outsourcing Income: Loss of outsourced job work could affect revenues.

Growth Opportunities

Cement Industry

  • Rural housing demand via PMAY-Gramin to drive cement consumption.
  • 6.5%-7.5% CAGR expected in rural housing cement demand by FY25.

Power Industry

  • Investments of Rs 23-24 trillion projected between FY25-29, with 75% allocated to renewable energy.

Defence Sector

  • Defence production CAGR of 8% (FY17-FY24) supported by FDI, policy reforms, and infrastructure development.

Key Players in the Market

  • ISGEC Heavy Engineering Ltd
  • Esab India Ltd
  • Ador Welding Ltd
  • Diffusion Engineers Ltd
  • AIA Engineering Ltd

Why Monitor Diffusion Engineers Share Price?

The strong financial performance, robust market presence, and diversified revenue streams make Diffusion Engineers' share price an important metric for investors. With steady growth across key sectors and a focus on innovation, the company holds significant potential in India’s rapidly industrializing economy.

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