Divgi TorqTransfer Q3 Results Review - Weak Performance; Q4 To Be Materially Better: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We cut our FY24/25/26E earning per share by 9%/15%/11%, to factor in headwinds at legacy business and slower than expected ramp-up of the electric vehicle segment. Divgi Torqtransfer Systems Ltd.'s revenue was below our estimates (by ~12%), led by weakness across segments except components. Divgi Torqtransfer Systems noted that it lost Rs. 160 million in revenue due to market headwinds at its principal customer accounts (Transfer case / EV / Defense). Ebitda margin at 20.5% was flat QoQ and came ~110 basis points below our estimates due to lower operating leverage. Restructuring at MG Motor India Ltd. and Tata Motors Ltd. prioritising models where the company doesn’t have exposure during the quarter impacted volumes.The company sees EV volume going back to Q2 levels given better demand from existing products and launch of Punch EV. Multiple order wins will start to go under execution and should help accelerate revenue growth in FY25E..Retain ‘Buy’ rating and target price of Rs 1,135 based on March-26 earning per share at 35 times price earning. The stock is trading at a P/E of 28 times on FY26E EPS..Click on the attachment to read the full report:.Tata Motors Q3 Results Review - Strong Beat Driven By Healthy Growth Across Businesses: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Divgi TorqTransfer Q3 Results Review - Weak Performance; Q4 To Be Materially Better: Prabhudas Lilladher

Divgi Torqtransfer Systems noted market headwinds had an impact on revenues at its principal customer accounts.

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Divgi TorqTransfer Q3 Results Review - Weak Performance; Q4 To Be Materially Better: Prabhudas Lilladher

Divgi Torqtransfer Systems noted market headwinds had an impact on revenues at its principal customer accounts.

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