PTC Industries – Metal Component Manufacturer in the Defence Industry

Company Overview

PTC Industries Ltd is a prominent supplier of castings, machined components, and fabricated parts essential for critical and supercritical applications worldwide. It has gained a reputation for delivering high-quality products in various materials. 

Its product portfolio encompasses a diverse range of materials, including Titanium Alloys, Alloy Steel, Stainless Steel, Duplex and Super Duplex Stainless Steel, Creep Resistant Steel, Heat Resistant Steel, Nickel-Based Alloys, Cobalt-Based Alloy, and more. These materials are known for their specific properties and suitability for different demanding applications. It has manufacturing facilities in Uttar Pradesh and Gujarat comprising two foundries, two CNC machine shops, and a DSIR-approved Research & Development lab. The company became the first to introduce Titanium Casting technology and manufacturing capability in India. The unit will help to substitute imports. 

By offering a wide selection of materials, the company caters to the specific requirements and standards of various industries, such as aerospace, automotive, energy, oil and gas, power generation, and more. 

Financial Performance 

In FY23, the company experienced a significant increase in revenue, rising by 22.53% from Rs 179 Crore to Rs 219 Crore. The operating profit for the year amounted to Rs 59 Crore, resulting in an operating margin of 27%. Furthermore, the company’s net profit doubled from Rs 13 Crore to Rs 26 Crore, reflecting a net profit margin of 12%. The Balance Sheet size has also grown substantially, expanding from Rs 154 Crore in 2013 to Rs 553 Crore in 2023. Regarding financial ratios, ROCE stands at 11.6%, ROE is at 10.9%, and the debt-to-equity ratio is 0.58, indicating a debt of only Rs 179 Crore. 

Stock Performance

Today, the stock opened at Rs 3149, showing a 2.88% increase compared to the previous closing price of Rs 3060.70. However, during the early morning session, the stock experienced a remarkable surge, reaching Rs 3672.80 and hitting the upper circuit of 20% on BSE. It’s 52-week high and low stand at Rs 3672.80 and Rs 1303.33, respectively. Currently, there are no sellers available for the stock on the BSE. The company’s total market capitalization today amounts to Rs 4915 Crore. Over the past month, the stock has generated a return of 56%, while over the past year, it has generated a return of 128%. Impressively, in just three years, the stock has delivered a multi-bagger return of over 2600%. 

The promoter holds 67.93% of the company, and according to the latest update, there is no investment from FIIs and DIIs. The public has the remaining 32.07% of the company’s shares. 

The company was also listed on NSE on Friday, June 09, 2023. 

Conclusion

India’s defence exports have achieved an unprecedented milestone, surging to Rs 15,920 crore from Rs 12,814 Crore in FY23, a remarkable ten-times increase since FY17. India’s defence products are now being exported to over 85 countries, underscoring the nation’s growing global reach in the defence sector. The government of India is focused on “Make in India” in the defense sector to reduce imports and boost exports resulting in opportunities for India’s private players. 

The government is to ban the import of more than 400 platforms, weapons, systems, and equipment by 2032 and it is also setting up defence corridors to push domestic manufacturing. The Company became the first to introduce Titanium Casting technology and manufacturing capability in India. The unit will help to substitute imports. 

The company has been exploring new markets and new products aggressively, and translation into viable commercial production has also begun. It is looking for import substitution for critical components leading the path to self-reliance in manufacturing in aerospace, space exploration, and other industries. 

 It has formed a new subsidiary Aerolloy Technologies Ltd during FY21 with an agenda to focus on the manufacture of high-quality cast components for the defence and Aerospace industries for both Indian and foreign consumption. The company has a great potential to grow in future investors must keep this on their radar.