Pitti Engineering Ltd. share price target

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock

We recommend a BUY on the stock with a near-term TP of Rs 1,425/Share, implying an upside of 10% from the CMP.

We recently conducted a visit to the Aurangabad facility of Pitti Engineering. This facility encompasses 26 acres of freehold land, currently featuring a built-up area of over 16,500+ square meters.
Following the planned expansion, the built-up area is expected to increase to over 38,600+ square meters.

We maintain our BUY rating on the stock with an unchanged TP of Rs 1,572/share, implying an upside of 21% from the CMP. We value the stock at 28x its FY26 EPS.

Pitti Engineering Ltd (PEL) reported robust top-line and bottom-line growth on YoY basis.
Revenue increased by 32.1% YoY (+16.7% QoQ) to INR 3,828 Mn, driven by strong volume growth.

We maintain our BUY recommendation on the stock.

Pitti Engineering Limited has reached an agreement to acquire 100.0% of the equity share capital of Dakshin Foundry Private Limited (“DFPL”) from its shareholders for an equity value of INR 1,531.2 Mn.
The cost of acquisition includes both business value and working capital of DFPL.

We maintain our BUY rating on the stock with a revised TP at Rs 1,180/share, implying an upside of 37% from the CMP.

We maintain our BUY rating on the stock with a revised TP at Rs 1,180/share, implying an upside of 37% from the CMP.

Pitti Engineering reported lower adjusted profit YoY despite higher sales growth.
Revenue increased 32.5% YoY to INR 3,279 Mn driven by higher sales volume of 11,435 MT, up +19.2% YoY.

We maintain our BUY recommendation on the stock.

PEL has finalized an agreement with BCIPL to enhance its market footprint in South India. Through this acquisition, PEL is targeting an increase in its capacity to approximately 90,000 tonnes.

In Q3FY24, sales volume reached its highest level of 10,572 metric tons, marking a 15.5% YoY and 2.2% QoQ increase. For 9MFY24, sales volume totaled 30,870 metric tons, aligning with the annual target of 42,000 tons.

We initiate coverage on Pitti Engineering Ltd. (PEL) with a BUY recommendation a Target Price of Rs 915/share, implying an upside of 40% from the current levels.

Pitti Engineering (PEL) is India's largest and most renowned manufacturer of Electrical Sheet Metal products, founded in 1983. It operates fully automated manufacturing facilities in Telangana and Aurangabad and is divided into two primary business segments: Motors and generators, and components. The company boasts a diverse product portfolio and holds a leading position in assembling large alternators and motors in India. Some of its esteemed clients include GE, Siemens, and Wabtec.