Diffusion Engineers Ltd is recently listed in the stock market at a good time. The Diffusion share price target is likely to give a good return in 2024, 2025, and 2026 because the welding consumable and wear plates market will likely grow up to 30% in the next 3 to 4 years. As the company manufactures both products, it will give a good return in the coming years.
Diffusion Engineers Ltd’s IPO issue size is Rs. 158.00 Crore, with a price range of Rs. 159 to Rs. 168. The stock was listed in the stock market on October 4, 2024, at Rs. 193.50. In short, the stock was listed with a 15% listing gain and currently trading at Rs. 203 (market closing) as of 4 October 2024.
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About Diffusion Engineers Ltd
Diffusion Engineers Ltd was founded in 1982, it works in the capital goods non-electrical equipment sector. The company primarily focuses on Welding consumables and electrode manufacturers & suppliers.
The company offers various services and products primarily for the industries involved in mining, construction, power generation, heavy engineering, and more. Some of the products and services of the Diffusion Engineers Ltd are-
WeldingConsumables
- Welding Consumables
- Flux Cored Wire
- Brazing Products
- Welding Electrodes
- SOP – (with Ultrahard Chromium Boride)
Diffcor
- Anti Corrosive
- DIFFGLASS – 1000
- DIFFGLASS VINSTER
- DIFFGLASS XTREME
- DIFF – GUARD
- Insulation Coating
- DIFF – INSULATE
- Floor Coating
- DIFF – FLEX
- DIFF – GUARD
- DIFF FLOOR TOP
- DIFF FLOOR PRIME
- DIFF FLOOR SCREED
- Maintenance and Repair
- INSTA – METAL
- UNI – METAL
- CERAMETAL-1
- CERAMETAL-2
- CERAMETAL-3
- CERABEAD
- CERABEAD-XTREME
- FLEXI-METAL
- DIFFAST
- DIFF-BOND
- Structural Coating
- DIFF – TOP
- DIFF – CERAGLASS
- DIFFGLASS – PRIME
Wear Plates & Wear Components
In the category, they have a lot of products like Grizzly Bars. Coal Nozzle Tip, Wear Liners, Chutes & Ducts, Hard Face Pipe, Guide Vanes, Sinter Spikes, Sinter Screen Decks, Screw Conveyors, Grit Cone, Rotor Bearing, Bell Housing, and many more…
Reconditioning Services
In the reconditioning services, the company offers services to maintain dozens of products to increase their life. Some products are ID Fans, Jaw Crushers, Hammers, Rotary Airlock, Bell Hopper, Crusher Rotors, Guide Vanes, Mill Pinions, Pump Sleeves and Plungers, and many more.
Currently, the company has 4 manufacturing facilities. It exports its products to dozens of countries the United Arab Emirates, Oman, Sri Lanka, Vietnam, Bangladesh, Kuwait, Germany, the US, Russia, Lebanon, Zambia, and many more.
The company is also involved in trading (welding and cutting equipment and thermal spray powder), heavy engineering, and more.
Diffusion Engineers Ltd’s Scrip Info
| NSE | DIFFNKG |
| BSE | 544264 |
| ISIN | INE184O01015 |
| SECTOR | CAPITAL GOODS NON-ELECTRICAL WELDING EQUIPMENT |
Company Analysis
Below you’ll find Diffusion Engineers Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.
Note: The shared information is not enough for a complete analysis of any company or stock. Kindly cross-check this information with any screener or broker.
Note: All the values are in (₹) Rupees Crore.
| Quarter | Net Profit & Loss |
|---|---|
| Sep 2023 | ₹ |
| Dec 2023 | ₹ |
| Mar 2024 | ₹ |
| Jun 2024 | |
| Sep 2024 |
| Year | Net Profit & Loss |
|---|---|
| Mar 2020 | ₹11 |
| Mar 2021 | ₹ |
| Mar 2022 | ₹17 |
| Mar 2023 | ₹22 |
| Mar 2024 | ₹31 |
Note: It is the company’s financial performance data, typically released every three months (quarterly) or once a year (annually).
| Market Cap | ₹0.00Cr | ROE | 16.08% |
| P/E Ratio (TTM) | 0.00 | EPS (TTM) | 582.25 |
| P/B Ratio | 0.00 | Div. Yield | 0.00% |
| Industry PE | 56.11 | Book Value | 3099.54 |
| Debt to Equity | 0.18 | Face Value | 10 |
| Held By | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Oct 2024 |
|---|---|---|---|---|---|
| FIIs | 2.95% | ||||
| DIIs | 8.53% | ||||
| Public | 18.82% | ||||
| Promoters | 69.70% | ||||
| Other Holders | 0.00% |
Key Insights
- Zero promoter pledge.
- Low debt on the company.
- Company revenue has improved over the years.
- Diffusion Engineers Ltd is a profitable company.
- The company can meet its working capital requirements.
Diffusion Engineers Share Price Target
Diffusion Engineer’s share price target for 2024, 2025, and 2026 is bullish as there is no major issue related to the company’s business and financials. In the last 5 years, the company’s compounded sales growth is 13%, and compounded profit growth is 25%. It’s a good number, now we have to see how the company performs in the future.
Financials of the company look strong as low debt on the company i.e. Rs. 33.71 Crore, cash of 2.55 crore, consistently making profits over the years, net profit is consistently increasing, In 2019 net profit is Rs. 9 Crore, In 2020 Rs. 11 Crore, In 2022 Rs. 27 Crore, In 2023 Rs. 22 Crore, In 2024 31 Crore. As you can see the company’s net profit is growing consistently.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹230 | ₹250 |
| 2025 | ₹250 | ₹300 |
| 2026 | ₹300 | ₹400 |
Diffusion Engineers Share Price Target 2024
Diffusion Engineers Ltd is listed in the NSE and BSE at Rs. 193.50 at a listing premium of 15%. Currently, the stock is trading at Rs. 203.17 (market closing) as of 04 October 2024. The listing gains and the upper circuit hit indicate that the stock is bullish and Diffusion Engineer’s share price target 2024 may give good returns.
As of now, Nifty and other indices are bearish due to many things falling continuously. At this time, the stock is going up due to the high demand. If the current news does not affect the market a lot then we can see the stock going near Rs. 230 to Rs. 250 by the year. As the current market is bearish so, it can also force stocks to fall.
Diffusion Engineers Share Price Target 2025 and 2026
The long-term target of any stock depends on the company’s financials, business model, and most importantly industry growth. As it is a small-cap company with low debt it is making profits consistently. So, the company is financially strong.
The future of the welding consumables and wear plate market is very bright. The welding consumables are valued at Rs. 51 billion (FY24) which is likely to increase by Rs. 13 billion to Rs. 15 billion by FY2027. The wear plates market is also likely to grow by Rs. 6 billion to Rs. 28 billion from Rs. 22 billion by FY2027.
The company raised the money for various purposes like upgrading the manufacturing facilities, adding a new manufacturing facility, funding working capital requirements, and many more things to improve the company and its capacity. Because the government is investing a lot of money in infrastructure, welding consumables and wear plates is one of the markets to get huge benefits.
These things indicate that the long-term like 2025 to 2027 the Diffusion Engineers share price target can go near Rs. 300 to Rs. 400. But as an investor, you should always keep that in mind that it is a small-cap company.
FAQs
The stock is listed in the stock market at 15% listing gains. After this on the same day, the stock hit its upper circuit i.e. Rs. 203.17, and gave a closing at this level on 4 Oct 2024.
These all things indicate that the stock is in a high demand zone which is good for the short-term investors. In the upcoming weeks, you can see the stock trading near Rs. 230 to Rs. 250.
Diffusion Engineers Ltd is a good but small-cap company. The company has made profits in the last few years and the profits have also increased in almost every financial years. These things are good as per a financial view.
The welding consumables and wear plates industry is also expected to grow rapidly by FY2027. These key points indicate it is a good small-cap stock.
Investing in recently listed stocks for the long term can be very dangerous for your portfolio because these stocks take a few weeks to a month to become stable, market share publically not disclosed, etc.
In this case, you should wait for a few weeks to make any decision related to investing in newly listed stock in the stock market.
Final Words
Diffusion Engineers Ltd is a small-cap company, the stock is listed recently in the stock market with a 15% listing gain. It is a low-debt profitable company and its revenue is continuously increasing. By 2027, the wear plats are likely to grow by 8 – 9 CAGR, and the welding consumable market is likely to increase by Rs. 13 billion to Rs. 15 billion from Rs. 51 billion. The industry is growing at a good growth rate which can help Diffusion Engineers share price target for 2024, 2025, and 2026 to give good returns.
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