Why PTC Industries Share Price is Rising

John Green, in his captivating novel The Fault in Our Stars, penned the now-famous line, "I am on a roller coaster that only goes up." This sentiment perfectly captures the recent trajectory of PTC Industries share price.

Over the past five years, it's been a one-way trip to the top, mirroring Green's metaphorical rollercoaster ride.

Take a look its five-year performance.

The impressive performance extends to the last one year as well.

In the past year, PTC Industries has delivered a staggering 320.8% return for investors. 2024 has been nothing short of an upward trajectory. The year so far boasts a growth of 122.6%.

The past month alone witnessed a 98% surge. Even today, the upward trend continued with a gain exceeding 17%.

The recent rally can be attributed to the company's latest media announcement.

Read on to know more.

#1 Formation of an Important SPV

PTC Industries recently announced a significant partnership. In its latest BSE filing it announced its participation in a special purpose vehicle (SPV) under the government's 'Make in India' initiative aimed at boosting the defense and aerospace sectors.

The company entered into this SPV with leading defence entities under the defence testing infrastructure scheme (DTIS).

This collaboration involves building a greenfield defence testing facility at the Lucknow node of the UP defence industrial corridor.

The facility, named the "Advanced Materials (Defence) Testing Foundation", will be a joint venture between key industry players like Hindustan Aeronautics, Bharat Dynamics, and PTC Industries, along with government support from the Uttar Pradesh Expressways Industrial Development Authority.

The project holds importance as it will create a state-of-the-art testing lab, one of its kind globally.

This facility will focus on advanced materials like titanium and super alloys, crucial for the defence sector.

The government of India will significantly contribute by covering 75% of the project cost, with the remaining 25% (Rs 530 million) being funded by the participating companies.

This joint effort is expected to significantly enhance testing capabilities and ensure superior quality and compliance with stringent defence standards.

Even before last week, its share price was rallying due to a strong performance in FY24.

#2 Strong Financial Performance

For FY24, the total income of the company stood at Rs 2,702.6 million (m) up 19.2% compared to the last year. The rise in income was due to growing demand.

The company's net profit for FY24 also witnessed an impressive 63.5% increase, reaching Rs 422.2 m.

This jump is a result of both rising revenues and a healthy backlog of orders, ensuring consistent production throughout the year.

#3 Other Notable Achievements in FY24

PTC Industries made significant strides towards environmentally sustainable practices in the production of titanium alloys for the aerospace and defence sectors.

The company has implemented innovative technologies like electron beam cold hearth refining (EBCHR) and plasma arc melting (PAM).

These techniques allow it to re-melt and reuse titanium scrap, significantly reducing reliance on fresh titanium sponge, a resource with a larger environmental impact.

This approach aligns perfectly with the global aviation industry's push for carbon neutrality.

By focusing on energy-efficient extraction and promoting titanium scrap recycling, the company is not only a sustainability pioneer in India, but also contributes to a circular economy.

In Q4 FY24 the company invested in a joint venture along with five other members namely, Lucknow 227101 Nigam, Yantra India, Hindustan Aeronautics, Bharat Dynamics, and Uttar Pradesh Expressways Industrial Development Authority.

Furthermore, it also strategically invested in its future by building a world-class Strategic Materials Technology Complex in Lucknow and acquiring key equipment for its aerospace and defence material manufacturing facility.

What Next?

PTC Industries share price is on a sustained upward climb, fuelled by the Indian government's strong push for self-reliance in the defence sector.

In future initiatives like positive indigenisation lists and allocating 75% of the defence budget for local procurement will directly benefit companies like PTC Industries.

Also, the government's approval for 45 companies/joint ventures with foreign OEMs, coupled with the iDEX scheme fostering innovation, creates a fertile ground for domestic defence manufacturing.

Going forward the government aims to nearly triple India's total annual defence production to Rs 3 trillion (tn) by 2028-29. The target for defence exports is Rs 500 bn as against Rs 210.8 bn at present.

The target for FY25 is Rs 1,750 bn worth of total annual defence production, which would include exports worth Rs 350 bn. PTC Industries is strategically positioned to capitalise on this growth.

Additionally, India's focus on fostering country-to-country relations for defence exports opens doors for new revenue streams for the company.

This combination of government support, strategic investments, and export potential is boosting investor confidence in PTC Industries, leading to a sustained rise in its share price.

Despite these projections, certain risks loom over the company, including technology obsolescence and management bandwidth constraints.

How PTC Industries Share Price has Performed Recently

In the past five days, PTC Industries share price has rallied 35%. In the last month, it is up 98.1%.

In 2024, so far its share price has surged 122.6% and its up 320.8% in the last year.

The stock touched its 52-week high of Rs 26 on 20 February 2024 and a 52-week low of Rs 12.9 on 4 June 2024.

About PTC Industries

PTC Industries specialises in manufacturing metal components for critical applications. The company operates within the engineering and allied activities segment.

The company provides a diverse range of materials, including titanium alloys, nickel and cobalt-based alloys, and stainless steel alloys, as well as many other exotic alloys.

Additionally, it offers materials such as alloy steel, stainless steel, duplex and super duplex, nickel-based alloys, cobalt-based alloys, and nickel aluminium bronze, among others.

The company's advanced manufacturing capabilities encompass design and simulation, research and innovation, rapid manufacturing, robotics and automation, vacuum melting and pouring, additive manufacturing, and smart manufacturing.

It caters to a wide range of industries, including aerospace, defence, oil & gas, liquefied natural gas (LNG), energy, marine, medical, and others. Aerolloy Technologies Limited is its subsidiary.

To know more, check out PTC Industries' financial factsheet and its latest quarterly results.

You can also compare PTC Industries with its peers:

PTC Industries vs Synergy Green Industries

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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