Pitti Lamination PLL is a 21 years young company catering to the Capital Goods Sector.Its ISO 9002 certified and manufactures high grade Electrical Steel Laminations which form a critical part in all types of electrical motors,alternators,pumps and DG sets.Its also into die-cast rotors,assembled rotors,built-up rotors, small laminations for compressors, jigs and fixtures.It supplies its products to ” who and who ” of electrical industry like,Alstom, ABB, Best and Crompton, Barat Bijlee, BHEL, Crompton, Kirloskar, KSB Pumps, Otis,Toyo Power ,Welco Technologies, GE Electric etc.Its exports to US and Japan constitute almost 25 % of its Rs. 150 crores turnover.
PLL is located close to Hyderabad and has 2 plants with capacity of 10,000 tonnes. Capacity is being doubled and on 28th Jan 2008 PLL has commissioned its 1st stage of forward integration project.
On Financial front PLL’s top-line is growing at more than 30% YOY with corresponding increase in the bottom line.
Scrip Code : 513519 Company Name : Pitti Laminations Ltd
Results reproduced from BSEINDIA
The latest Q3 results of FY08 are very encouraging with top line growing by more than 30% over Q2 FY08 with more than 50% increase in PAT over Q2FY08.
PLL has an equity capital of Rs. 9.2 crores.Expected top line for FY08 is Rs.150 crores and Rs.250 Crores for FY 09.Based on Q3 results expected EBIDTA for FY 08 is Rs. 20 crores and an EPS of Rs.12 per share. Market capitalisation of PLL at CMP of Rs. 60 is less than Rs. 60 crores, and share is available at P/E of 5, which appears to be highly under-priced for this high technology R & D driven company, catering to the most important segment of the Industry. With Mkt. Cap. / EBIDTA ratio of less than 3 for FY09 and PEG of less than 0.2, the share is a screaming BUY at CMP.
Buy is recommended at CMP of Rs. 60 with 2 years HOLD.
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