Pitti Engineering Shares Surge 116%: Is It Time to Buy, Sell, or Hold? - Everything You Need To Know
Pitti Engineering has emerged as a standout multibagger stock, witnessing a remarkable surge of 116% in its share price over the past year. This integrated manufacturer specializes in components for rotating electrical equipment, contributing around 70% of a motor's total value and about 90% in volume. Its product lineup includes loose laminations, stators, rotors, shaft manufacturing, and integrated assemblies.
In the last six months, Pitti Engineering's share price has also shown impressive growth, climbing more than 70%. However, the stock experienced a slight dip of about 2% on Monday, influenced by an overall subdued market sentiment.
Market analysts like Rajesh Bhosale from Angel One highlight that while the stock showed strong traction from key support levels recently, it needs to break the ₹1,350 mark to trigger further momentum. If successful, the stock could potentially reach ₹1,450.
Brokerage firm DR Choksey has issued a bullish buy recommendation for Pitti Engineering, setting a target price of ₹1,552. After visiting the company's Aurangabad facility, they noted the extensive development plans, which include expanding the built-up area from over 16,500 square meters to more than 38,600 square meters.
Haitong Securities India has also initiated coverage on Pitti Engineering. They emphasize the company's superior margin profile compared to competitors due to its integrated manufacturing processes, which reduce costs associated with outsourcing. The management has set ambitious growth projections, aiming for a consolidated topline of ₹22.5 billion by FY27, up from ₹12 billion in FY24. They anticipate improving EBITDA margins by 150-200 basis points, driven by synergies from recent acquisitions.
With solid growth projections and a favorable operational structure, Pitti Engineering presents an attractive opportunity for investors. As the company continues to expand and enhance its offerings, the question remains: should you buy, sell, or hold? Given the positive outlook, many analysts lean toward a buy recommendation, anticipating further gains in the future.
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