1,180% Return in 3 Years: This multibagger stock can touch Rs 1,145 level, brokerage gives buy rating after Q4 results

Stock to BUY: Quarterly results of companies, global trends and business activities of foreign investors will decide the trend of the stock market this week. Last week, Sensex rose 1.84 per cent, while Nifty 50 rose two per cent. Market volatility may increase in the next few weeks. Selective purchasing of shares of some large-, medium- and small-cap companies will continue. Domestic brokerage Axis Securities has selected Pitti Engineering for investment. The brokerage has given a 'buy' rating on the stock, which has already given a return of around 150 per cent a year.

Pitti Engineering: Brokerage's perspective

According to broking firm Axis Securities, Pitti Engineering is a leading company manufacturing electrical steel laminations.

The company's results in the fourth quarter of FY24 were good.

PAT remained inline, while revenue was better than expected.

There was strong growth in revenue due to an increase in value-added products.

The brokerage says that PEL has strategically developed its products to meet market demand, which has led to improved profitability.

These value added products have also helped the company increase its competitive edge and attract more customers.

The increasing demand for renewable energy and marine applications in the international market is expected to significantly support PEL's revenue growth and improve its profitability going forward.

The company will benefit from Pitti Casting (PCPL) merger and Bagadia acquisition. The outlook of the sector is positive.

Pitti Engineering Share Target Price

Axis Securities has given a 'buy' call on Pitti Engineering.

It has given a target price of Rs 1,145.

On May 18, the stock fell 0.15 per cent and closed at the level of Rs 873.60.

At this price, the stock can give further returns of more than 31 per cent.

The company has earned a profit of Rs 40 crore in the fourth quarter of FY24.

This is a multibagger stock. The stock has given around 150 per cent return in one year.

Whereas, it has given returns of 221 per cent in the two years and more than 1,180 per cent in the three years.

The market cap of the company is Rs 2,799.89 crore. The 52-week high of the stock is Rs 919 and the low is Rs 334.50.

(Disclaimer: Investing in stock market is subject to market risks. Consult your advisor before taking any investment decision.)