PTC Industries Nears Record High in a Falling Market

PTC Industries shares rallied nearly 7% to Rs 24,685 on Thursday, closing in on their all time high of Rs 24,800, even as the broader market stayed weak after the RBI's rate hike. For a stock that has compounded into a defence and aerospace titanium specialist, today's move extends a run building for months. PTC Industries and its subsidiary Aerolloy Technologies have stacked up marquee orders this year, a missile sub-system contract from BrahMos Aerospace, a titanium tank cradle order from DRDO's ARDE, artillery work for Gun Factory Kanpur, and an Airbus deal to supply machined titanium castings for the A320neo, A330neo and A350 programmes. That momentum showed in the June quarter, when consolidated net profit jumped to Rs 29.2 crore from Rs 5.2 crore a year earlier, revenue rose nearly 96% to Rs 190 crore, and EBITDA margin expanded sharply to 25.5% from 9%. This reads like an engineering company graduating into higher value work as it gets qualified by global and domestic defence and aerospace customers, rather than a move driven by one news trigger. Titanium casting for aircraft and missile components is a narrow, high barrier niche, and once a supplier is qualified on a programme like the A350, revenue tends to stay sticky for years, the kind of structural story that keeps a stock near its highs even when the broader market sells off. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in PTC Industries. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.