Pitti Engineering Ltd. (PITTIENG) AI Stock Analysis

• Market Cap: ₹29.65B
• Dividend Yield: 0.18%
• Average Volume (3M): 45.79K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.09
• Revenue Growth: 26.81%
• EPS Growth: 1.06%
• Country: IN
• Employees: 1,331
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 10.55
• Shares Outstanding: 37,653,587
• 10 Day Avg. Volume: 1,786
• 30 Day Avg. Volume: 45,793
• PEG Ratio: 1.11
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -97.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹761.00 ▼(-6.39% Downside)

Pitti Engineering Ltd. has a solid financial performance with strong growth and profitability, but faces challenges with high leverage and negative free cash flow. Technical indicators suggest bearish momentum, and the valuation is moderate with a low dividend yield. These factors combined result in a balanced overall stock score.

Positive Factors

Revenue and Profit Growth

Sustained strong revenue and profit growth indicates expanding market reach and successful service execution across infrastructure and manufacturing projects. Over the next 2-6 months, this supports repeat business, stronger pricing leverage, and continued investment in capabilities that drive durable top-line momentum.

Equity Base and ROE

A notably stronger equity base and improved return on equity enhance the company’s financial resilience, enabling it to absorb project volatility, support bid capacity on large contracts, and finance strategic investments with less dilution. This underpins long-term capacity to grow without excessive external equity raises.

Operating Cash Generation

Rising operating cash flow points to better conversion of revenue into cash from core services and project execution, which strengthens liquidity and funds working capital needs. Over months, improved cash generation reduces reliance on short-term financing and supports sustainable operations and maintenance contracts.

Negative Factors

High Leverage

Material reliance on debt weakens financial flexibility and raises refinancing and interest-rate sensitivity risks. Persistently high leverage can constrain the company’s ability to fund new contracts or absorb project delays without costly external funding, posing a durable headwind to strategic agility.

Negative Free Cash Flow

Recurring negative free cash flow from elevated capex undermines the company’s ability to self-fund growth and maintenance, increasing dependence on external financing. Over time this can elevate financing costs, limit reinvestment flexibility, and pressure balance sheet stability if capex persists.

Earnings Quality / EBIT Margin Pressure

A declining EBIT margin despite gross margin gains suggests rising operating or SG&A costs or inefficiencies in project delivery. If not addressed, this structural erosion of operating profitability can reduce cash available for reinvestment and weaken long-term margin sustainability versus peers.

Pitti Engineering Ltd. Business Overview & Revenue Model

Company Description

Pitti Engineering Limited manufactures and sells manufactures electrical sheet metal products in India. It manufactures engineering products of iron and steel, including electrical steel laminations, stator and rotor core assemblies, subassemblies, pole assemblies, die-cast rotors, press tools, and high precision machining of various metal components. The company's products are used in hydro and thermal generation, windmill, mining, cement, steel, sugar, construction, lift irrigation, freight rail, passenger rail, mass urban transport, e-mobility, appliances, medical equipment, oil and gas, and other industrial applications. It also exports its products. The company was formerly known as Pitti Laminations Limited and changed its name to Pitti Engineering Limited in May 2018. Pitti Engineering Limited was incorporated in 1983 and is based in Hyderabad, India.

How the Company Makes Money

Pitti Engineering Ltd. generates revenue primarily through its service offerings, which include engineering consultancy, project management, and design services. The company charges clients on a fee-for-service basis, often structured as fixed-price contracts or hourly rates, depending on the project scope. Key revenue streams also include long-term maintenance and support contracts, which provide steady income over time. Additionally, PITTIENG may engage in strategic partnerships with construction firms and government agencies, allowing for collaborative projects that enhance its market reach and revenue potential. The firm also capitalizes on innovative technologies and sustainability initiatives, attracting clients seeking modern solutions, thus contributing to its overall earnings.

Pitti Engineering Ltd. Financial Statement Overview

Summary

Pitti Engineering Ltd. shows strong revenue and profit growth with improved profitability margins. However, high leverage and negative free cash flow due to high capital expenditures pose potential risks. The company needs to manage debt levels and improve free cash flow conversion for sustained financial health.

Income Statement

Pitti Engineering Ltd. has demonstrated a robust revenue growth trajectory, with total revenue increasing significantly over the years, particularly from 2024 to 2025. Gross profit margins have improved, indicating enhanced efficiency in managing production costs. The net profit margin has shown considerable improvement, reflecting effective cost controls and pricing strategies. However, the EBIT margin has slightly decreased, signaling potential challenges in cost management below the gross profit line. Overall, the income statement reveals strong growth and profitability trends, with some areas for improvement in operational efficiency.

Balance Sheet

The company's balance sheet shows a healthy equity base with stockholders’ equity increasing notably, which supports a strong equity ratio. However, the debt-to-equity ratio remains relatively high, indicating a significant reliance on debt financing. Return on equity has improved, showcasing effective use of equity capital to generate profits. While the equity growth is commendable, the high leverage poses potential risks if not managed carefully.

Cash Flow

Cash flow analysis indicates a fluctuating pattern in free cash flow, with negative values in recent years indicating high capital expenditures. The operating cash flow has increased, suggesting improved cash generation from core activities. However, the free cash flow to net income ratio is concerning, reflecting potential challenges in converting profits into free cash flow. This could impact the company's ability to fund operations and growth without relying heavily on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.25B	17.05B	12.02B	11.00B	9.50B	5.11B
Gross Profit	4.52B	6.88B	3.88B	3.18B	2.54B	1.64B
EBITDA	1.66B	3.10B	2.16B	1.67B	1.40B	975.41M
Net Income	590.20M	1.22B	901.91M	588.35M	518.70M	287.56M
Balance Sheet
Total Assets	0.00	20.04B	13.30B	9.78B	9.57B	7.01B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.40B	1.09B	397.13M	350.50M	89.55M
Total Debt	0.00	6.90B	6.28B	3.56B	3.93B	3.18B
Total Liabilities	-8.99B	11.05B	9.14B	6.44B	6.73B	4.65B
Stockholders Equity	8.99B	8.99B	4.16B	3.34B	2.84B	2.36B
Cash Flow
Free Cash Flow	0.00	-376.22M	-1.65B	1.15B	-60.67M	-372.72M
Operating Cash Flow	0.00	2.89B	735.84M	2.22B	879.11M	317.11M
Investing Cash Flow	0.00	-5.36B	-2.36B	-1.04B	-927.84M	-664.51M
Financing Cash Flow	0.00	2.69B	1.98B	-865.67M	122.13M	284.04M

Pitti Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 812.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PITTIENG, the sentiment is Neutral. The current price of 812.95 is above the 20-day moving average (MA) of 749.86, above the 50-day MA of 798.40, and below the 200-day MA of 917.62, indicating a neutral trend. The MACD of -14.03 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PITTIENG.

Pitti Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHANTIGEAR	66 Neutral	₹34.66B	41.83	―	1.06%	―	―
JASH	65 Neutral	₹24.43B	31.51	―	0.47%	25.52%	-4.18%
JTEKTINDIA	65 Neutral	₹37.95B	51.26	―	0.49%	4.44%	-25.67%
HARSHA	64 Neutral	₹34.26B	34.73	―	0.27%	3.92%	-24.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PITTIENG	60 Neutral	₹29.65B	23.00	―	0.18%	26.81%	1.06%
HPL	60 Neutral	₹21.33B	22.24	―	0.24%	6.08%	49.44%