The shares of this midcap company locked a 5 percent upper circuit after announcing the acquisition of a Hot Rolling Mill for manufacturing Plates and Sheets in Titanium Alloys for Aerospace and Defence applications.
Price Movement:
With a market capitalization of Rs. 20,046 crores, the shares of PTC Industries Ltd started Monday’s trading session on a higher note at Rs. 13,500 compared to its previous close of Rs. 13,360. During the trading session, the shares locked a 5 percent upper-circuit at Rs. 14,028 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced the acquisition of a Hot Rolling Mill for manufacturing Plates and Sheets in Titanium Alloys for Aerospace and Defence applications.
As per the filing, this advanced capability is being acquired from the USA and represents a significant milestone for the company.
This will be a further value addition of Titanium Alloy ingots and billets that will be produced by ATL’s upcoming Strategic Materials Technology Complex in the Lucknow node of the UP Defence Industrial Corridor (UPDIC).
With the acquisition of this Hot Rolling Mill, the company will achieve full vertical integration across the entire Titanium alloy products value chain, expanding its offerings to include Titanium Alloy Ingots, Billets, Bars, Rods, Castings, as well as Plates and Sheets.
Additionally, this new manufacturing capability will facilitate the production of thinner titanium sheets, essential for defence and aerospace applications like aircraft wings and marine engineering components, including corrosion-resistant ship parts.
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Financials:
Looking at the company’s financial statements, the revenue decreased by around 35 percent from Rs. 72.41 crores during the March quarter to Rs. 46.87 crores in the June quarter. On the other hand, the net profits declined by around 67 percent from Rs. 14.72 crores to Rs. 4.90 crores during the same timeframe.
CAPEX:
PTC is setting up a state-of-the-art Strategic Materials Technology facility in Lucknow, which is poised to become the largest Titanium recycling and remelting centre globally.
Additionally, this facility will have the capability to manufacture Nickel/Cobalt Superalloys, serving the Aerospace and Defence sectors.
The company has procured essential equipment for this facility and is currently undertaking the installation of an Electron Beam Cold Hearth Remelting furnace (EBCHR) and Vacuum Induction Melting (VIM) furnaces.
Furthermore, PTC has already successfully installed the Vacuum Arc Remelting (VAR) and Plasma Arc Melting (PAM) furnaces, which are on track for commissioning in the second half of FY25.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.53 percent and a return on capital employed (RoCE) of 9.21 percent for the period spanning FY23-24. Further, the net profit margin stood at 16.43 percent during the same timeframe.
Prominent Investor:
According to the BSE data, Ace Investor Mr Mukul Agrwal, entering the stock in March 2024, currently holds 1.67 lakh equity shares equivalent to a 1.16 percent stake in this company. The current holding value of his investment amounts to Rs. 231.8 crores.
Company Profile:
PTC Industries Limited manufactures metal components for critical and supercritical applications for industries like Defence, Oil & Gas, Liquefied Natural Gas (LNG), Ships & Marine etc.
Written By Vaibhav Patil
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