PTC Industries, a notable component in Mukul Agrawal investment portfolio, has been in a consolidation phase for the past six months
PTC Industries, a company in Mukul Agrawal investment portfolio, has been in a consolidation phase for the past six months, yet it has managed to deliver a robust 75% increase year-to-date (YTD). The stock has shown signs of stabilization around the ₹11,000 mark, hinting at a potential bottoming out.
This development has prompted market analysts, such as ICICI Securities, to take note. The brokerage has issued a ‘buy’ recommendation for PTC Industries, setting a long-term target price at an ambitious ₹20,070 per share.
In their analysis, ICICI Securities highlights the strategic importance of PTC Industries' recent acquisition of Trac Precision Solutions Ltd. The move is seen as a crucial step in enhancing the company's domestic manufacturing capabilities, particularly in the production of complex components for aero engines, industrial gas turbines, and defense systems.
Trac, renowned for its high-value components for major OEMs like Rolls Royce and Safran, reported a revenue of GBP 24.8 million in CY23. The financial benefits of this acquisition are expected to be fully realized in PTC Industries' FY26 financials.
ICICI Securities further elaborates on the synergy between PTC Industries and Trac, stating that the acquisition enhances PTC's ability to control the entire manufacturing process, from alloy development to the production of precision-engineered parts. This move not only complements PTC existing skills in titanium and superalloy castings but also addresses a crucial gap in India engine manufacturing landscape, potentially fueling the indigenisation drive and tapping into the burgeoning MRO sector.
For investors, ICICI Securities advises, “With this strategic acquisition, PTC Industries is not just expanding its technological prowess but also its market reach. We maintain our BUY recommendation with an unchanged target price of ₹20,070, based on our DCF model.”
The latest shareholding pattern for July-September 2024 reveals that Mukul Agrawal holds 1.60 lakh shares in PTC Industries, accounting for 1.07% of the company total paid-up capital, signaling strong investor confidence.
This acquisition is seen as a catalyst for PTC Industries, potentially transforming it into a more formidable player in the global aerospace and defense manufacturing arena. Investors are watching closely as this development could mark a significant turning point for the company stock performance.
