Stock to buy: Axis Securities recommends Pitti Engineering as its pick of the week; sees up to 10% upside

Stocks to buy for short term: Domestic brokerage firm Axis Securities, in its recent note, named Pitti Engineering as its 'Pick of the Week' stock. The brokerage retained its ‘Buy’ call on the company, with a target price of ₹1,085 per share—indicating an upside potential of around 10% from the stock’s previous closing price.

The brokerage’s optimism stems from the company’s consistent rise in volumes, fresh capacity additions, a steady increase in demand for its products, and a strong revenue target for the current fiscal year. These factors led the brokerage to retain its positive outlook on the company.

Pitti Engineering reported a 40% year-on-year increase in revenue during Q4FY25, primarily driven by contributions from recent acquisitions. This resulted in a 50% rise in sales volumes (17,185 MT in Q4FY25 vs. 11,435 MT in Q4FY24). The company is actively working to enhance capacity utilization, which the brokerage believes will likely support further volume growth.

In Q4, the company commissioned a new production line at its Aurangabad plant, increasing total sheet metal capacity to 72,000 MT. Additionally, it continues to witness healthy demand across major end-user industries, including railways, wind and hydro (under green energy), pumps, and power generation.

Pitti Engineering is targeting a 10% volume growth in FY26, with revenue guidance of ₹2,000 crore for FY26 and ₹2,100–2,200 crore for FY27 (assuming stable raw material costs). The company aims to reach 68,000 tonnes in FY26 and achieve full capacity utilization of 72,000 tonnes by FY27.

With strong volume trends in recent quarters, the brokerage believes the company is well-positioned for a rebound once short-term headwinds ease.

A shift toward value-added products, increasing export demand, and new business additions offer long-term growth visibility. Expected margin improvement will be supported by higher volumes and better capacity utilization, driving operating leverage as fixed costs remain stable, the brokerage further noted.

About the Company

Founded in 1983, Pitti Engineering manufactures a broad range of engineering products made from iron and steel. Its portfolio includes electrical steel laminations, sub-assemblies for motor and generator cores, die-cast rotors, machined cast and fabricated components, and shafts.

Its rotating electrical equipment portfolio comprises loose laminations, pole laminations, assembled stator cores, and RTU stators.

The company serves a diversified set of sectors, including hydro and thermal power generation, wind energy, mining, cement, steel, sugar, construction, lift irrigation, rail (freight and passenger), urban transport, e-mobility, appliances, medical equipment, oil and gas, and other industrial applications.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.