NSEI:PITTIENG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Pitti Engineering Limited manufactures and sells electrical steel laminations, stampings, motor cores, sub-assemblies, die-cast rotors, and press tools in India and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.

Share Price & News

How has Pitti Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PITTIENG is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PITTIENG's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

2.5%

PITTIENG

4.9%

IN Electrical

2.3%

IN Market


1 Year Return

-0.1%

PITTIENG

-7.8%

IN Electrical

7.4%

IN Market

Return vs Industry: PITTIENG exceeded the Indian Electrical industry which returned -7.8% over the past year.

Return vs Market: PITTIENG underperformed the Indian Market which returned 7.4% over the past year.


Shareholder returns

PITTIENGIndustryMarket
7 Day2.5%4.9%2.3%
30 Day35.0%12.9%8.1%
90 Day36.9%9.3%10.0%
1 Year-0.1%-0.1%-5.4%-7.8%9.4%7.4%
3 Year-41.5%-41.5%-20.3%-24.4%5.2%0.1%
5 Year-16.4%-16.4%3.8%-2.4%52.4%41.0%

Long-Term Price Volatility Vs. Market

How volatile is Pitti Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pitti Engineering undervalued compared to its fair value and its price relative to the market?

24.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PITTIENG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PITTIENG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PITTIENG is poor value based on its PE Ratio (24.5x) compared to the IN Electrical industry average (21.8x).

PE vs Market: PITTIENG is poor value based on its PE Ratio (24.5x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PITTIENG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PITTIENG is good value based on its PB Ratio (0.7x) compared to the IN Electrical industry average (0.9x).


Next Steps

Future Growth

How is Pitti Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pitti Engineering has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Pitti Engineering performed over the past 5 years?

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PITTIENG has high quality earnings.

Growing Profit Margin: PITTIENG's current net profit margins (1.4%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: PITTIENG's earnings have grown significantly by 39.2% per year over the past 5 years.

Accelerating Growth: PITTIENG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PITTIENG had negative earnings growth (-74.6%) over the past year, making it difficult to compare to the Electrical industry average (-23.9%).


Return on Equity

High ROE: PITTIENG's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Pitti Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: PITTIENG's short term assets (₹3.6B) exceed its short term liabilities (₹3.5B).

Long Term Liabilities: PITTIENG's short term assets (₹3.6B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: PITTIENG's debt to equity ratio (126.5%) is considered high.

Reducing Debt: PITTIENG's debt to equity ratio has reduced from 142.9% to 126.5% over the past 5 years.

Debt Coverage: PITTIENG's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: PITTIENG's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Pitti Engineering current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PITTIENG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PITTIENG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PITTIENG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PITTIENG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PITTIENG is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PITTIENG's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Sharad Pitti (63 yo)

no data

Tenure

₹6,972,000

Compensation

Mr. Sharad B. Pitti serves as the Chairman and Managing Director at Pitti Engineering Limited (formerly known as Pitti Laminations Limited). Mr. Pitti serves as the Chairman at Pitti Castings Pvt Ltd. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Sharad's total compensation ($USD93.89K) is above average for companies of similar size in the Indian market ($USD51.27K).

Compensation vs Earnings: Sharad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sharad Pitti
Chairman & MDno data₹6.97m19.11%
₹ 276.6m
Akshay Pitti
Vice Chairman & MD10.67yrs₹6.81m13.19%
₹ 190.9m
Nand Khandelwal
CFO & President of Corporate Resources4.75yrs₹6.81m0.18%
₹ 2.6m
Mary Braganza
Company Secretary & Compliance Officer2.92yrs₹1.78mno data

4.8yrs

Average Tenure

Experienced Management: PITTIENG's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sharad Pitti
Chairman & MDno data₹6.97m19.11%
₹ 276.6m
Akshay Pitti
Vice Chairman & MD10.67yrs₹6.81m13.19%
₹ 190.9m
Muddusetty Gopalakrishna
Non-Executive Independent Director13.42yrs₹240.00kno data
Nagabhushan Ganti
Non-Executive Independent Director18.08yrs₹340.00k0.0050%
₹ 72.2k
Gayathri Ramachandran
Non-Executive Independent Director6.17yrs₹230.00kno data
Gummalla Kumar
Non-Executive Independent Director14.25yrs₹470.00k0.000060%
₹ 868.2
Swaminathan Thiagarajan
Non-Executive Independent Director5.58yrs₹325.00kno data

12.0yrs

Average Tenure

66yo

Average Age

Experienced Board: PITTIENG's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PITTIENG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pitti Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pitti Engineering Limited
  • Ticker: PITTIENG
  • Exchange: NSEI
  • Founded: 1983
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹1.447b
  • Shares outstanding: 32.05m
  • Website: https://www.pitti.in

Number of Employees


Location

  • Pitti Engineering Limited
  • 6-3-648/401
  • 4th Floor
  • Hyderabad
  • 500082
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513519BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2002
PITTIENGNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2002

Biography

Pitti Engineering Limited manufactures and sells electrical steel laminations, stampings, motor cores, sub-assemblies, die-cast rotors, and press tools in India and internationally. The company manufacture...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 12:33
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.