Pitti Engineering Q4 Review- Increase In Value-Added Products Aiding In Robust Revenue Growth: Axis Securities

Axis Securities Report

We maintain our Buy rating on Pitti Engineering Ltd. with a revised target price at Rs 1,145 /share, implying an upside of 31% from the current market price. Considering the steady improvement in profitability and overall revenue mix, we are rerating the stock at 25 times (previously 19 times) on its FY26 earnings per share.

We believe our recommendation is supported by-

1. Pitti Engineering’s robust Capex and capacity addition directly resulting in strong improvement in the company’s order book,

2. Increasing revenue contribution from value-added products (components),

3. Upcoming merger with Pitti Castings and acquisition of Bagadia Chaitra Industries Pvt. Ltd. resulting in improving ROE and ROCE (to 24.8% and 24% respectively).

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