Pitti Engineering Ltd. (PITTIENG) AI Stock Analysis

• Market Cap: ₹27.69B
• Dividend Yield: 0.18%
• Average Volume (3M): 45.79K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.14
• 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: ₹879.00 ▲(8.12% Upside)

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 Growth

Strong revenue growth indicates expanding market reach and successful client acquisition, supporting long-term business sustainability.

Profitability Margins

Enhanced profitability margins reflect effective cost management and pricing strategies, contributing to sustained financial health.

Equity Base

A strong equity base supports financial stability and provides a cushion against economic fluctuations, aiding long-term growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing risk and potentially impacting the company's ability to invest in growth.

Negative Free Cash Flow

Negative free cash flow indicates challenges in funding operations and growth internally, possibly leading to increased reliance on debt.

EBIT Margin Decline

A decline in EBIT margin suggests potential inefficiencies in operational cost management, which could affect profitability if not addressed.

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: Negative
• Last Price: 812.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PITTIENG, the sentiment is Negative. The current price of 812.95 is above the 20-day moving average (MA) of 810.77, below the 50-day MA of 849.92, and below the 200-day MA of 938.24, indicating a bearish trend. The MACD of -17.96 indicates Positive momentum. The RSI at 27.32 is Positive, neither overbought nor oversold. The STOCH value of 13.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	₹34.01B	36.59	―	1.06%	―	―
JASH	65 Neutral	₹25.78B	33.26	―	0.47%	25.52%	-4.18%
JTEKTINDIA	65 Neutral	₹41.71B	56.33	―	0.49%	4.44%	-25.67%
HARSHA	64 Neutral	₹34.66B	35.12	―	0.27%	3.92%	-24.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PITTIENG	60 Neutral	₹27.69B	21.48	―	0.18%	26.81%	1.06%
HPL	60 Neutral	₹24.32B	25.35	―	0.24%	6.08%	49.44%