Pitti Engineering Limited

Industrials — Metal Fabrication · NSE

₹1,017.00+₹5.90 (+0.58%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Pitti Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pitti Engineering Limited manufactures and sells iron and steel engineering products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees1,982

Annual revenue₹1,898 Cr

How does it make money?

Turns over ₹1,898 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 1,982 employees supports ₹95.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin17.8%

Net margin6.2%

Revenue / employee₹95.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Some evidence

ROCE of 15.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.6%

ROE11.9%

Peer median ROE18.7%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 14.8% and earnings to grow about 26.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.8%

Est. earnings growth+26.2%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +73% while net margin moved +16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+73%

Margin effect+16%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 11.9% is moderate
✗ ROE has fallen by 5.7 points over the period

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.3x

3Y Median

35.9x

40 monthly readings · mean 37.4x · range 20.7x–65.4x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 35.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 149% above the peer median of 12.2x.

vs. its own history

Fair

35.9x median over 40 months · -16%

vs. sector peers

Expensive

12.2x median of 4 peers · +149%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.3x

P/B

3.80x

EV/EBITDA

13.1x

PEG

1.16

Dividend Yield

0.25%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 14.3% to 17.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 127% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 17.6% to 11.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.2% to 15.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 127% over 3 years, from ₹356 Cr to ₹811 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.3% to 17.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 149% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 17.6% to 11.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.1% CAGR
Latest reported year was 15.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹3,754 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.80x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹33.57

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

15.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

15.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.25%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,017

P/E (Forward)

20.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.1%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1100.1 / 1089.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

17.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,095 Cr	₹1,234 Cr	₹1,691 Cr	₹1,898 Cr	+20.1%
EBITDA	₹156 Cr	₹220 Cr	₹296 Cr	₹338 Cr	+29.3%
EBITDA Margin	14.3%	17.8%	17.5%	17.8%	—
PAT (Net Profit)	₹59 Cr	₹90 Cr	₹122 Cr	₹118 Cr	+26.0%
EPS	₹18.36	₹26.2	₹33.32	₹31.77	+20.1%
ROE	17.6%	19.0%	13.6%	11.9%	—
ROCE	21.2%	19.6%	16.5%	15.6%	—
Total Debt	₹356 Cr	₹628 Cr	₹690 Cr	₹811 Cr	+31.5%
Free Cash Flow	₹116 Cr	-₹170 Cr	-₹66 Cr	₹0 Cr	-89.5%

🟢 Revenue has grown at 20.1% a year over 3 years.

🟢 EBITDA has grown at 29.3% a year over 3 years.

🟢 EBITDA Margin has risen from 14.3% to 17.8% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 26.0% a year over 3 years.

🟢 EPS has grown at 20.1% a year over 3 years.

🔴 ROE has fallen from 17.6% to 11.9% over 3 years (-5.7 pts).

🔴 ROCE has fallen from 21.2% to 15.6% over 3 years (-5.5 pts).

🔴 Total Debt has grown at 31.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 89.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,138 Cr

Total Liabilities

₹1,151 Cr

Total Debt

₹811 Cr

Cash & Equivalents

₹119 Cr

Operating Cash Flow

₹205 Cr

Capex

-₹205 Cr

Shareholding (proxy)

Institutional Holding

18.3%

Insider Holding

58.3%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,343

+32.1% vs CMP

Target Range

₹1,343 – ₹1,343

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

3 positive1 mixed2 general

Stock To Buy: Pitti Engineering In Focus As Axis Securities Turns Bullish — Check Target Price

NDTV Profit, 26 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Compare Raymond with PITTI LAMINATIONS

Equitymaster, 16 Oct

Pitti Engineering Share Price News on Fresh 52-Week High

Univest, 25 Aug

Why You Might Be Interested In Pitti Engineering Limited (NSE:PITTIENG) For Its Upcoming Dividend

Simply Wall Street, 07 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Pitti Engineering net profit rises 29% in Q1FY27 on revenue growth

scanx.trade, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Pitti Engineering Q4 Revenue Rises to ₹5.01B; PAT Falls 26%; Approves ₹2.90B Capex

Sahi, 14 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate12.4/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.1/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 15% a year20.1% CAGR
✓EBITDA margin holds above 16%17.8%
✗Debt / EBITDA stays below 2x2.4x
✓Interest cover stays above 3x3.6x
✓Free cash flow remains positive₹0 Cr