Pitti Engineering stock soared over 2000% in last three years; is there more upside left?
Pitti Engineering (PEL) with a 'buy' rating, setting a target price of ₹940 apiece. This target price suggests a potential upside of nearly 38% from the stock's previous closing price of ₹684.35 apiece. Notably, the shares, over the last one-year, more than doubled investors' wealth, delivering a return of 135%, and skyrocketed 2018% in just three years.
Pitti Engineering is one of the leading manufacturers and exporters of electrical laminations from India and one of the leading suppliers to all motor manufacturers domestically. It also specialises in the manufacture of value-added motor/generator sub-assemblies and precision machined components for diverse sectors. The brokerage lists the following key reasons for its bullish outlook: The company has diversified its product portfolio with a strong focus on value addition.
According to Phillip Capital, Pitti Engineering has moved upstream—from loose laminations to assemblies, to larger sub-assemblies, and now to components. This transformation, according to the brokerage, required raising in-house skills and developing new capabilities across sheet metal, machining, and assembly. In the process, PEL transformed from being a plain laminations manufacturer to becoming an integrated engineering solutions provider.
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