Pitti Engg. (PITTIENG)
CyclicalFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,059.8 |
| Market Cap | ₹3,912.1 Cr |
| P/E Ratio | 33.34 |
| ROCE | 17.05% |
| ROE | 12.08% |
| Dividend Yield | 0.14% |
| Profit Growth | 18.62% |
| Debt/Equity | 0.82 |
| Sales Growth | 13.71% |
| Promoter Holding | 54.18% |
| 52-Week Range | ₹675 — ₹1,228.15 |
| Sector | Industrial Manufacturing |
| Book Value | ₹267.37 |
Strengths
- Sales growth of 15.05% shows strong demand for the company's industrial products.
- ROCE of 17.05% and ROE of 12.08% indicate reasonably efficient capital deployment.
- Promoter holding of 54.18% aligns management with minority shareholders.
- Latest quarter sales of ₹477 Cr demonstrate meaningful operating scale.
Concerns
- P/E of 26.91 with profit growth of -1.88% makes the valuation expensive.
- Piotroski F-Score of 4/9 and FairStock Score of 32/100 suggest weak financial health.
- Profit declined despite 15.05% sales growth, pointing to margin compression.
- Dividend yield of 0.16% offers negligible income to shareholders.
AI Analysis
At ₹909, Pitti Engineering is no bargain. A P/E of 26.91 against a profit decline of 1.88% violates Graham's margin of safety. The company has grown sales by 15.05%, but net profit actually slipped, suggesting pricing pressure or rising costs. Return on equity of 12.08% and ROCE of 17.05% are respectable, but a debt/equity of 0.83 means leverage is doing part of the work. The Piotroski F-Score of 4/9 and FairStock Score of 32/100 both tell me the financial health is below what I would want. Promoter holding of 54.18% is good; owner alignment exists. But at 26.91 times earnings and a dividend yield of just 0.16%, the market is paying for growth that has not shown up in the bottom line. The PEG ratio of 1.79 reinforces that concern. In Graham's language, this is a speculative valuation, not an investment one. If I owned it, I would watch quarterly margins carefully: the latest quarter's sales of ₹477 Cr produced only ₹28 Cr net profit, a thin margin. The 52-week range of ₹675 to ₹1093.50 shows real volatility. This looks like a cyclical industrial manufacturer at an elevated point in the cycle, with earnings possibly near a peak. Without a clear moat and with profit growth negative, I cannot call it a wonderful business at a fair price. I would wait for a lower price, or evidence that profitability is improving, before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer