Today’s top gainer delivered 60% revenue growth

Pitti Engineering Ltd is up more than 11% for the day.

India’s GDP numbers came out yesterday. The numbers were in line with the expectation so no impact was observed in the market due to the GDP data. At the time of writing, markets are flat, with S&P BSE Sensex trading at 55652.29, 0.15 % up for the day. However, there is a lot of stock-specific action today. One of them is Pitti Engineering Limited.

Pitti Engineering Ltd in Group B has rallied more than 11% up and is trading at Rs 305 at 11:47 am on 1st June 2022, as against its yesterday’s closing price of Rs 271.65. The stock also made a high of Rs 307.75 early on during the day. The scrip is up for the third consecutive day. The stock rallied due to a decrease in commodity prices and positive stock sentiment fueled by decent Q4 results.

The company reported excellent topline growth in their Q4 results. However, there was a decline in the bottom-line for the company compared to their Q4 FY21 number. Company reported Q4 revenue at Rs 271 crore, a significant YOY growth of 59.4%. On YOY basis, net profit declined from Rs 21 crore to Rs 20 crore for Q4FY22. The decline in YOY operating margin was experienced due to an increase in input cost for the company.

The company has reduced its debtors’ days from 98.86 to 78.16 days for the period FY22. The company has a ROCE and ROE of 18% and 20% for the FY22 period ending, respectively. The company’s board has also approved fresh CAPEX worth Rs 197 crore to meet their growing revenue numbers in the future.

Talking about valuations, the company has a market capitalization of Rs 962.9 crore. The stock is trading at 18.7x PE and 4.1x PB. The stock has a 52-week high and low at Rs 344.25 and Rs 96.5.

Pitti Engineering Ltd. is involved in the manufacturing of Electrical Steel Laminations, Motor Cores, Sub-Assemblies, Die-Cast Rotors, Press Tools and machining of metal components.