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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Pitti Engineering Ltd

About the Company - Pitti Engineering Ltd

Pitti Engineering Ltd. is a Public Limited Listed company incorporated on 17/09/1983 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L29253TG1983PLC004141 and registration number is 004141. Currently Company is involved in the business activities of Forging, pressing, stamping and roll-forming of metal; powder metallurgy. Company’s Total Operating Revenue is Rs. 953.82 Cr. and Equity Capital is Rs. 16.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - General6-3-648/401, 4th Floor, Hyderabad Telangana 500082info@pitti.in
http://www.pitti.in
Management
NamePosition Held
Mr. Sharad B PittiChairman & Managing Director
Mr. Akshay S PittiVice Chairman & Mng.Director
Mr. N R GantiInd. Non-Executive Director
Mr. G Vijaya KumarInd. Non-Executive Director
Mr. M GopalakrishnaInd. Non-Executive Director
Ms. Gayathri RamachandranInd. Non-Executive Director
Mr. S ThiagarajanInd. Non-Executive Director

Pitti Engineering Ltd. Share Price Update

Share PriceValue
Today₹673.25
Previous Day₹674.60

Basic Stock Data of Pitti Engineering Ltd

Market Cap 2,352 Cr.
Current Price 734
High / Low749/256
Stock P/E31.5
Book Value 113
Dividend Yield0.39 %
ROCE18.2 %
ROE19.0 %
Face Value 5.00

Data Source: screener.in

Competitors of Pitti Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
McNally Bharat Engineering Company Ltd 118 Cr. 5.567.23/2.90 1770.00 %28.3 %% 10.0
Nitiraj Engineers Ltd 172 Cr. 167196/66.2 65.90.00 %0.38 %0.35 % 10.0
Thermax Ltd 41,896 Cr. 3,5163,562/1,98576.8 3350.29 %15.1 %12.3 % 2.00
Mazda Ltd 574 Cr. 1,4341,661/59517.5 4840.99 %21.0 %15.4 % 10.0
Somi Conveyor Beltings Ltd 120 Cr. 102117/32.225.8 58.10.00 %7.92 %5.31 % 10.0
Industry Average205 Cr55.7124.022240.26%14.54%6.67%8.4

Pitti Engineering Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales135151170175242265271311304238248290290
Expenses111126144147207231236275268199207247248
Operating Profit24252728353435353739414243
OPM %18%17%16%16%14%13%13%11%12%16%16%15%15%
Other Income00190011510116113
Interest689981012111212101211
Depreciation78899911101111131312
Profit before tax11102810181627151417341932
Tax %8%28%25%28%26%26%27%22%29%28%26%25%29%
Net Profit107217131220121012251423
EPS in Rs3.152.276.622.304.103.626.173.653.173.787.754.367.04

Pitti Engineering Ltd Quarterly Chart

Pitti Engineering Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4193052453353082833796225255189541,1001,066
Expenses356264212295289250323530447439821949901
Operating Profit63413341193455927880133151164
OPM %15%13%13%12%6%12%15%15%15%15%14%14%15%
Other Income01222321419161830
Interest23181911171523303430404545
Depreciation78916151618222730394549
Profit before tax3316715-115164020397180101
Tax %33%38%38%38%16%16%31%41%14%25%26%26%
Net Profit221049-10411241729525973
EPS in Rs8.303.651.563.46-3.541.603.787.955.348.9816.1918.3622.93
Dividend Payout %18%14%32%29%0%0%0%0%0%0%13%15%

Pitti Engineering Ltd Profit & Loss Yearly Chart

Pitti Engineering Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:24%
3 Years:28%
TTM:0%
Compounded Profit Growth
10 Years:20%
5 Years:38%
3 Years:51%
TTM:39%
Stock Price CAGR
10 Years:45%
5 Years:67%
3 Years:124%
1 Year:123%
Return on Equity
10 Years:12%
5 Years:16%
3 Years:18%
Last Year:19%

Pitti Engineering Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141414141415151616161616
Reserves8795981049399135156192220268318347
Borrowings141150121143174181256247245317393356478
Other Liabilities116647610781117144166143148280287259
Total Liabilities3583223093683624105495845967019569781,101
Fixed Assets778487877694201227247285327364382
CWIP416101231958112433
Investments04416161717161616161515
Other Assets276233211255258268321336324399613574670
Total Assets3583223093683624105495845967019569781,101

Pitti Engineering Ltd Reserves and Borrowings Chart

Pitti Engineering Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 30443445-7732871693488222
Cash from Investing Activity -20-12-17-20-7-56-113-46-46-66-93-104
Cash from Financing Activity -8-36-14-2014-2086-26-212812-86
Net Cash Flow3-536-0-41-23-4732

Pitti Engineering Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days9910696112133116132107971217860
Inventory Days14218523117321126219185134171147112
Days Payable1028013613912021916088102115119117
Cash Conversion Cycle13821119214622415916310412817810655
Working Capital Days1331961901411831411529912117611168
ROCE %29%14%11%11%2%7%12%17%12%14%18%18%

Pitti Engineering Ltd Financial Efficiency Indicators Chart

Pitti Engineering Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.28%59.28%59.28%59.28%59.28%59.28%59.29%59.29%59.29%59.29%59.29%59.29%
FIIs0.04%0.05%0.12%0.30%0.02%0.03%0.05%0.10%0.00%0.19%0.13%0.22%
DIIs0.00%0.00%0.00%0.26%0.26%0.89%2.90%5.53%5.91%6.19%5.51%6.56%
Public40.67%40.67%40.60%40.15%40.43%39.80%37.77%35.07%34.79%34.34%35.07%33.94%
No. of Shareholders11,60516,05220,41920,45322,40226,09327,87926,95026,75728,54234,50641,372

Pitti Engineering Ltd Shareholding Pattern Chart

No. of Pitti Engineering Ltd Shareholders

Pitti Engineering Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
LIC MF Multi Cap Fund1943111.6912.68
LIC MF ULIS 10 Yrs Regular Premium Reducing cover1684602.3510.99
LIC MF ULIS 10 Yrs Regular Premium Uniform cover1684602.3510.99
LIC MF ULIS 10 Yrs Single Premium1684602.3510.99
LIC MF ULIS 15 Yrs Regular Premium Reducing cover1684602.3510.99
LIC MF ULIS 15 Yrs Regular Premium Uniform cover1684602.3510.99
LIC MF ULIS 5 Years Single Premium1684602.3510.99
LIC MF Large & Mid Cap Fund1594330.4410.4
LIC MF Infrastructure Fund804683.695.25
LIC MF Childrens Gift Fund53902.420.35

Pitti Engineering Ltd ROCE Trend

Pitti Engineering Ltd EPS Trend

Pitti Engineering Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21
FaceValue5.005.005.00
Basic EPS (Rs.)18.3616.188.97
Diluted EPS (Rs.)18.3616.188.97
Cash EPS (Rs.)32.2828.3018.45
Book Value[Excl.RevalReserv]/Share (Rs.)104.2088.5673.55
Book Value[Incl.RevalReserv]/Share (Rs.)104.2088.5673.55
Revenue From Operations / Share (Rs.)343.18297.53161.63
PBDIT / Share (Rs.)52.7846.4930.74
PBIT / Share (Rs.)38.8534.3721.26
PBT / Share (Rs.)24.9222.0112.02
Net Profit / Share (Rs.)18.3516.188.97
NP After MI And SOA / Share (Rs.)18.3516.188.97
PBDIT Margin (%)15.3815.6219.01
PBIT Margin (%)11.3211.5513.15
PBT Margin (%)7.267.397.43
Net Profit Margin (%)5.345.435.54
NP After MI And SOA Margin (%)5.345.435.54
Return on Networth / Equity (%)17.6118.2612.19
Return on Capital Employeed (%)23.6523.7418.99
Return On Assets (%)6.015.424.10
Long Term Debt / Equity (X)0.360.380.43
Total Debt / Equity (X)0.861.141.27
Asset Turnover Ratio (%)1.141.150.00
Current Ratio (X)1.201.191.13
Quick Ratio (X)0.670.640.66
Inventory Turnover Ratio (X)3.053.230.00
Dividend Payout Ratio (NP) (%)12.807.260.00
Dividend Payout Ratio (CP) (%)7.274.150.00
Earning Retention Ratio (%)87.2092.740.00
Cash Earning Retention Ratio (%)92.7395.850.00
Interest Coverage Ratio (X)3.793.763.33
Interest Coverage Ratio (Post Tax) (X)2.322.311.97
Enterprise Value (Cr.)1090.641324.39504.03
EV / Net Operating Revenue (X)0.991.390.97
EV / EBITDA (X)6.458.895.12
MarketCap / Net Operating Revenue (X)0.781.090.41
Retention Ratios (%)87.1992.730.00
Price / BV (X)2.593.650.90
Price / Net Operating Revenue (X)0.781.090.41
EarningsYield0.060.050.13

Pitti Engineering Ltd Profitability Ratios (%)

Pitti Engineering Ltd Liquidity Ratios

Pitti Engineering Ltd Liquidity Ratios (%)

Pitti Engineering Ltd Interest Coverage Ratios (%)

Pitti Engineering Ltd Valuation Ratios

Fair Value / Intrinsic Value of Pitti Engineering Ltd

Fair Value: ₹678.94

The stock is overvalued by 7.50% compared to the current price ₹734

*Investments are subject to market risks

Strength and Weakness of Pitti Engineering Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (376.54 cr) and profit (33.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 31.49 and average Dividend Yield of 12.01%.
  2. The stock has a low average ROCE of 13.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 142.58, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 150.33, which may not be favorable.
  5. The company has higher borrowings (246.31) compared to reserves (170.15), which may suggest financial risk.

Should I Buy Pitti Engineering Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Pitti Engineering Ltd:
    1. Net Profit Margin: 5.34%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.65% (Industry Average ROCE: 9.89%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 2.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.67
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 29.3 (Industry average Stock P/E: 19.44)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.86
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Pitti Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE