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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Pitti Engineering Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:31 pm

Market Cap 3,273 Cr.
Current Price 1,019
High / Low1,027/354
Stock P/E36.3
Book Value 130
Dividend Yield0.26 %
ROCE20.0 %
ROE24.0 %
Face Value 5.00
PEG Ratio0.92

Competitors of Pitti Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
McNally Bharat Engineering Company Ltd 104 Cr. 4.917.23/2.90 1990.00 %%% 10.0
Va Tech Wabag Ltd 6,985 Cr. 1,1231,181/43528.4 2920.00 %20.5 %14.5 % 2.00
Confidence Futuristic Energetech Ltd 249 Cr. 99.6169/96.029.4 62.70.36 %7.07 %5.56 % 5.00
Atam Valves Ltd 241 Cr. 210250/13641.3 27.10.72 %24.1 %20.8 % 10.0
BMW Industries Ltd 1,365 Cr. 60.686.0/27.721.4 29.40.36 %13.2 %10.1 % 1.00
Industry Average4,836.06 Cr736.6633.18127.370.22%20.43%18.20%6.10

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales151170175242265271311304238248290290294
Expenses126144147207231236275268199207247248250
Operating Profit25272835343535373941424344
OPM %17%16%16%14%13%13%11%12%16%16%15%15%15%
Other Income01900115101161133
Interest8998101211121210121114
Depreciation889991110111113131215
Profit before tax10281018162715141734193219
Tax %28%25%28%26%26%27%22%29%28%26%25%29%31%
Net Profit721713122012101225142313
EPS in Rs2.276.622.304.103.626.173.653.173.787.754.367.044.16

Last Updated: June 10, 2024, 5:57 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 11:08 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3052453353082833796225255189541,1001,202
Expenses2642122952892503235304474398219491,024
Operating Profit413341193455927880133151178
OPM %13%13%12%6%12%15%15%15%15%14%14%15%
Other Income1222321419161848
Interest181911171523303430404550
Depreciation8916151618222730394554
Profit before tax16715-115164020397180122
Tax %38%38%38%16%16%31%41%14%25%26%26%26%
Net Profit1049-10411241729525990
EPS in Rs3.651.563.46-3.541.603.787.955.348.9816.1918.3628.14
Dividend Payout %14%32%29%0%0%0%0%0%0%13%15%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-60.00%125.00%-211.11%140.00%175.00%118.18%-29.17%70.59%79.31%13.46%52.54%
Change in YoY Net Profit Growth (%)0.00%185.00%-336.11%351.11%35.00%-56.82%-147.35%99.75%8.72%-65.85%39.08%

Growth

Compounded Sales Growth
10 Years:17%
5 Years:14%
3 Years:32%
TTM:9%
Compounded Profit Growth
10 Years:36%
5 Years:30%
3 Years:44%
TTM:54%
Stock Price CAGR
10 Years:42%
5 Years:84%
3 Years:96%
1 Year:169%
Return on Equity
10 Years:15%
5 Years:18%
3 Years:21%
Last Year:24%

Last Updated: June 17, 2024, 10:48 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-109.00-88.00-102.00-155.00-147.00-201.00-155.00-167.00-237.00-260.00-205.00-438.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
LIC MF Multi Cap Fund194,3111.6912.685,3902024-06-203505.03%
LIC MF ULIS 10 Yrs Regular Premium Reducing cover168,4602.3510.995,3902024-06-203025.42%
LIC MF ULIS 10 Yrs Regular Premium Uniform cover168,4602.3510.995,3902024-06-203025.42%
LIC MF ULIS 10 Yrs Single Premium168,4602.3510.995,3902024-06-203025.42%
LIC MF ULIS 15 Yrs Regular Premium Reducing cover168,4602.3510.995,3902024-06-203025.42%
LIC MF ULIS 15 Yrs Regular Premium Uniform cover168,4602.3510.995,3902024-06-203025.42%
LIC MF ULIS 5 Years Single Premium168,4602.3510.995,3902024-06-203025.42%
LIC MF Large & Mid Cap Fund159,4330.4410.45,3902024-06-202857.94%
LIC MF Infrastructure Fund80,4683.695.255,3902024-06-201392.91%
LIC MF Childrens Gift Fund5,3902.420.355,3902024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue5.005.005.005.00
Basic EPS (Rs.)28.1418.3616.188.97
Diluted EPS (Rs.)28.1418.3616.188.97
Cash EPS (Rs.)44.9832.2828.3018.45
Book Value[Excl.RevalReserv]/Share (Rs.)129.83104.2088.5673.55
Book Value[Incl.RevalReserv]/Share (Rs.)129.83104.2088.5673.55
Revenue From Operations / Share (Rs.)374.81343.18297.53161.63
PBDIT / Share (Rs.)70.4752.7846.4930.74
PBIT / Share (Rs.)53.6238.8534.3721.26
PBT / Share (Rs.)38.0324.9222.0112.02
Net Profit / Share (Rs.)28.1318.3516.188.97
NP After MI And SOA / Share (Rs.)28.1318.3516.188.97
PBDIT Margin (%)18.8015.3815.6219.01
PBIT Margin (%)14.3011.3211.5513.15
PBT Margin (%)10.147.267.397.43
Net Profit Margin (%)7.505.345.435.54
NP After MI And SOA Margin (%)7.505.345.435.54
Return on Networth / Equity (%)21.6617.6118.2612.19
Return on Capital Employeed (%)22.5323.6523.7418.99
Return On Assets (%)6.786.015.424.10
Long Term Debt / Equity (X)0.630.360.380.43
Total Debt / Equity (X)1.290.861.141.27
Asset Turnover Ratio (%)1.041.141.150.00
Current Ratio (X)1.251.201.191.13
Quick Ratio (X)0.760.670.640.66
Inventory Turnover Ratio (X)3.143.053.230.00
Dividend Payout Ratio (NP) (%)0.0012.807.260.00
Dividend Payout Ratio (CP) (%)0.007.274.150.00
Earning Retention Ratio (%)0.0087.2092.740.00
Cash Earning Retention Ratio (%)0.0092.7395.850.00
Interest Coverage Ratio (X)4.523.793.763.33
Interest Coverage Ratio (Post Tax) (X)2.802.322.311.97
Enterprise Value (Cr.)2875.861090.641324.39504.03
EV / Net Operating Revenue (X)2.390.991.390.97
EV / EBITDA (X)12.736.458.895.12
MarketCap / Net Operating Revenue (X)2.040.781.090.41
Retention Ratios (%)0.0087.1992.730.00
Price / BV (X)5.882.593.650.90
Price / Net Operating Revenue (X)2.040.781.090.41
EarningsYield0.030.060.050.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,135.50

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.43% compared to the current price 1019

Intrinsic Value: 1,583.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 55.37% compared to the current price ₹1019

Last 5 Year EPS CAGR: 39.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (373.00 cr) and profit (35.00 cr) over the years.
  1. The stock has a low average ROCE of 13.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 142.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 150.33, which may not be favorable.
  4. The company has higher borrowings (266.58) compared to reserves (181.50), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Pitti Engineering Ltd:
    1. Net Profit Margin: 7.50%
      • 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: 22.53% (Industry Average ROCE: %)
      • 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. ROE%: 21.66% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.80
      • 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.
    5. Quick Ratio: 0.76
      • 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.
    6. ✗ Stock P/E: 36.3 (Industry average Stock P/E: )
      • 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.
    7. ✗ Total Debt / Equity: 1.29
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Pitti Engineering Ltd?

The latest fair value of Pitti Engineering Ltd is ₹1135.50.

What is the Market Cap of Pitti Engineering Ltd?

The Market Cap of Pitti Engineering Ltd is 3,273 Cr..

What is the current Stock Price of Pitti Engineering Ltd as on 21 June 2024?

The current stock price of Pitti Engineering Ltd as on 21 June 2024 is ₹1,019.

What is the High / Low of Pitti Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Pitti Engineering Ltd stocks is 1,027/354.

What is the Stock P/E of Pitti Engineering Ltd?

The Stock P/E of Pitti Engineering Ltd is 36.3.

What is the Book Value of Pitti Engineering Ltd?

The Book Value of Pitti Engineering Ltd is 130.

What is the Dividend Yield of Pitti Engineering Ltd?

The Dividend Yield of Pitti Engineering Ltd is 0.26 %.

What is the ROCE of Pitti Engineering Ltd?

The ROCE of Pitti Engineering Ltd is 20.0 %.

What is the ROE of Pitti Engineering Ltd?

The ROE of Pitti Engineering Ltd is 24.0 %.

What is the Face Value of Pitti Engineering Ltd?

The Face Value of Pitti Engineering Ltd is 5.00.

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