Curated By: Business Desk
Last Updated: December 11, 2023, 12:40 IST
Pitti Engineering Limited was started in 1983.
Axis Securities has recommended buying Pitti Engineering Ltd stock for three primary reasons. Let’s find out.
Pitti Engineering Limited, a leading manufacturer of electrical lamination, motor cores, sub-assemblies, die-cast rotors, and press tools in the country, has shown impressive returns to investors. An investor who put Rs 8,000 into this company two decades ago is now a millionaire. Over the last nine months, the stock has almost quadrupled investors’ capital. Axis Securities, a domestic brokerage firm, has recently started covering Pitti Engineering, highlighting the stock’s potential for robust future earnings.
In the recent trading session on Friday, December 8, Pitti Engineering’s shares closed at Rs 712.60, registering a modest gain of 0.21 percent. The stock’s 52-week high is Rs 748, a level reached in the previous trading week. Over the last 6 months, investors have seen an 88 percent return; and in the last 9 months, the return stands at 191 percent. Looking at the one-year performance, the stock has witnessed a significant jump of 114 percent.
Axis Securities has recommended buying Pitti Engineering stock for three primary reasons. Firstly, the company is expanding its capacity. Secondly, there is a notable focus on value-added products. Thirdly, there is a substantial international expansion. According to the brokerage, by the fiscal year 2026, the company is projected to achieve revenue growth of 13 percent CAGR, reaching Rs 1,588 crore, and EBITDA is anticipated to grow at a 13 percent CAGR, reaching Rs 258 crore.
Axis Securities has issued a buy rating for Pitti Engineering shares, establishing a target price of Rs 915. This represents an approximate 26 percent potential increase from the current stock price. The brokerage advises considering any declines in the stock resulting from profit booking as favourable buying opportunities.
Shares of Pitti Engineering, which were valued at 57 paise on June 3, 2003, have surged to Rs 712.
About Pitti Engineering
Started in 1983, Pitti Engineering is regarded as the largest manufacturer in India, specialising in electrical sheet laminations, motor cores, sub-assemblies, die-cast rotors, and machined components. The company, boasting four decades of expertise, specialises in producing value-added motor/generator sub-assemblies.