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Pitti Engineering reported a strong Q2 FY26 with revenue growing 11.3% year-on-year to INR 4,777 million, exceeding analyst estimates by 11%. This growth was driven by robust operational performance and resilient export demand across key sectors. Analyst Deven Choksey reiterated a 'BUY' rating for the stock, setting a target price of INR 1,080 based on September 2027 estimates.
Pitti Engineering has announced its financial results for the second quarter of Fiscal Year 2026 (Q2 FY26), showcasing significant year-on-year growth.
The company's revenue reached INR 4,777 million, marking an 11.3% increase compared to the same period last year. This figure also surpassed analyst expectations by approximately 11%. The impressive performance was attributed to several factors, including stronger operational traction from increased machining hours, improved utilization rates in casting operations, and a higher contribution from value-added integrated assemblies. Additionally, resilient export demand from critical segments such as rail traction, power equipment, and data centers provided further support.
Looking ahead, the company's valuation basis has been updated to incorporate estimates for September 2027. Pitti Engineering is being valued at 19.0 times its projected Earnings Per Share (EPS) for September 2027. This valuation method leads to a target price of INR 1,080 for the stock.
Following these results and the updated outlook, analyst Deven Choksey has reiterated a 'BUY' rating on Pitti Engineering, signalling confidence in the company's future prospects.
Rating: 7/10
This news is highly positive for Pitti Engineering investors. The stronger-than-expected Q2 results and the reaffirmation of a 'BUY' rating with a substantial target price suggest a potential upward movement in the stock. The robust performance in key export segments also points to positive long-term trends for the company. Investors are likely to react favorably, which could lead to increased demand for the stock.
