PTC Industries, an engineering component manufacturer, has experienced a notable shift in its share performance over the past few weeks. After months of muted performance, the shares have experienced a sudden spike since the start of June, with their value jumping from ₹2,449 apiece to hit a 52-week high of ₹4,680 on June 30, representing a remarkable gain of 91%.
While the stock experienced a modest decline of 8% in the last three trading sessions due to profit booking, it still boasts an impressive 68% gain over the one-month period.
From its August 2022 low of ₹1,585, the stock zoomed 164% to date, while it is up by 915% over the last three years.
The upswing in PTC Industries' shares can be attributed to investors' enthusiastic response to the company's robust performance in the March quarter. The company on May 30 reported a stellar 99.1% rise in its consolidated net profit at ₹9.20 crore.
The revenue from operations during the same quarter surged to ₹62.23 crore, compared to ₹50.71 crore in the same quarter last fiscal. The operating profit came in at ₹18.49 crore in Q4FY23 compared to ₹13.85 crore in Q4FY22, a growth of 36.8% YoY with an EBITDA margin of 30.2% in Q4FY23.
Overall, the company ended FY23 with a net profit of ₹26 crore, a significant improvement when compared to the net profit of ₹13 crore recorded in FY22, whereas its revenues jumped to ₹219 crore, a surge of 23.5% over FY22's revenue of ₹179 crore.
During the quarter, the company's wholly owned subsidiary, Aerolloy Technologies, received approval from Israel Aerospace Industries (IAI) as a supplier of cast components for aerospace applications. This is the first time that IAI is sourcing such cast components from India, the company said in an exchange filing.
In addition to its solid financial numbers and order wins, the company on June 09 announced the listing of its equity shares on the NSE following approval from the exchange. The company is already listed on the BSE. Listing on the NSE is part of its efforts to enhance the liquidity and availability of its shares, the company said.
PTC Industries is a small-cap stock with a market capitalization of ₹5,600 crore. The company is one of the world’s leading suppliers of high-precision metal components for critical and super-critical operations across a wide range of segments, including aerospace, defence, and industrial.
The aerospace suppliers are currently in a sweet spot due to record jet orders by the country's top two carriers (IndigGo and Air India), boosting domestic parts manufacturing and aircraft repairs.
With growing air traffic, a shift towards alternative sourcing away from China, and recent substantial orders, India has emerged as a crucial market for the aerospace industry, according to media reports.
Meanwhile, the company has invested in well-integrated manufacturing units with manufacturing facilities in Uttar Pradesh and Gujarat. In addition, an expansion is underway at the recently acquired 50 acres of land by its subsidiary Aerolloy Technologies Limited (ATL), located in the Lucknow node of the Uttar Pradesh Defence Industrial Corridor next to the Brahmos facility.
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