Pitti- Ongoing Merger, Focus On VAP Products, Demand In International Biz To Aid Market Share: Axis Securities

Axis Securities Report

We maintain our Buy rating on the stock with a revised target price at Rs 1,180/share, implying an upside of 29% from the current market price. We believe the current market environment remains conducive for the business and the dilution of equity (around 35 lakh shares to be added) is unlikely to impact the valuation significantly.

Accordingly, we continue to the stock at 25 times on its FY26EPS. We believe our recommendation is supported by-

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

2. increasing revenue contribution from added products (components),

3. upcoming merger with Pitti Castings and acquisition of BCIPL supporting the earnings growth.

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