The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 17.67 is strong.
Divgi TorqTransfer Systems has a Altman Z-Score of 20.91, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Divgi TorqTransfer Systems's Altman Z-Score or its related term are showing as below:
NSE:DIVGIITTS'
s Altman Z-Score Range Over the Past 10 Years
Min: 13.16 Med: 14.91 Max: 25.01
Current: 17.67
During the past 7 years, Divgi TorqTransfer Systems's highest Altman Z-Score was 25.01. The lowest was 13.16. And the median was 14.91.
Divgi TorqTransfer Systems (NSE:DIVGIITTS) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:DIVGIITTS vs ORLY, AZO: Altman Z-Score Comparison
For the Auto Parts subindustry, Divgi TorqTransfer Systems's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Divgi TorqTransfer Systems Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Divgi TorqTransfer Systems's Altman Z-Score falls into.
Divgi TorqTransfer Systems Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Divgi TorqTransfer Systems (NSE:DIVGIITTS) has a Altman Z-Score of 20.91 as of Jul. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Divgi TorqTransfer Systems and its competitors. This is 40% above median its historical median of 14.91. Over the past decade, Divgi TorqTransfer Systems' Altman Z-Score has ranged from 13.16 to 25.01. According to the industry distribution chart, Divgi TorqTransfer Systems ranks #30 out of 1312 companies in the Vehicles & Parts industry, placing it in the top 2.3%.
Is Divgi TorqTransfer Systems' Altman Z-Score too high?
Divgi TorqTransfer Systems' current Altman Z-Score of 20.91 is 40% above median its 10-year median of 14.91. Over the past 10 years, this metric has ranged from a low of 13.16 to a high of 25.01. The Vehicles & Parts industry median Altman Z-Score is 2.54. Divgi TorqTransfer Systems' value of 20.91 is 723.2% above this industry median. Based on the distribution chart, Divgi TorqTransfer Systems ranks #30 out of 1312 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Divgi TorqTransfer Systems has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divgi TorqTransfer Systems' Altman Z-Score compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Divgi TorqTransfer Systems ranks #30 out of 1312 companies for Altman Z-Score. This places Divgi TorqTransfer Systems in the top 2% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.54. Divgi TorqTransfer Systems' value of 20.91 is 723.2% above this benchmark. Historically, Divgi TorqTransfer Systems' own Altman Z-Score has ranged from 13.16 to 25.01 over the past decade. While the company's 10-year median is 14.91 vs. the industry median of 2.54, Divgi TorqTransfer Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.54, based on 1,312 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Divgi TorqTransfer Systems's current Altman Z-Score of 20.91 is 723.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Divgi TorqTransfer Systems and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Divgi TorqTransfer Systems's current Altman Z-Score is 20.91, which is 40% above median its own 10-year median of 14.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divgi TorqTransfer Systems stock overvalued right now?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems (NSE:DIVGIITTS) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,066.03, compared to a current price of ₹1,021.50 — trading 4.2% below its estimated fair value. The current Altman Z-Score is 20.91, which is 40% above median its 10-year median of 14.91 and 723.2% above the Vehicles & Parts industry median of 2.54. Divgi TorqTransfer Systems' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Divgi TorqTransfer Systems (NSE:DIVGIITTS), the current Altman Z-Score is 20.91 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Divgi TorqTransfer Systems (NSE:DIVGIITTS) Overvalued in 2026?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems stock appears to be undervalued.
The current stock price of ₹1,021.50 is trading 4.2% below its estimated GF Value™ of ₹1,066.03.
GuruFocus considers Divgi TorqTransfer Systems to be Fairly Valued.
Key valuation signals for NSE:DIVGIITTS:
Altman Z-Score: 20.91 (40% above median its 10-year median of 14.91)
GF Value™: ₹1,066.03 vs. price of ₹1,021.50 (4.2% below fair value)
Industry Position: 723.2% above the Vehicles & Parts median (#30 of 1312)
No single metric tells the full story. See the NSE:DIVGIITTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system-level transfer cases, torque couplers, and dual clutch automatic transmission solutions. The Company operates only in one business segment, viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e., domestic and exports. The company gained the majority of its revenue from India, followed by the USA, Mexico, and Sweden.
78GF Score
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