The stock hit 10% upper circuit within the first hour of market open on Friday. The announcement of inclusion in the MSCI India Small Cap Index drove volumes during the hour to more than 6.5x compared to yesterday’s volumes from 5k to 33k.
The stock enjoys a bullish sentiment among the community, and from technical indicators – it currently trades 17.4% above 20 day moving average and 16.8% away from its 52 week high. The stock was listed in August 2022 on BSE and was listed on NSE in June 2023.
PTC Industries Ltd (“PTC”) was among 40 new inclusions into the MSCI Global Small Cap Indices. There were 11 other exclusions too. Analysts have estimated approx. cash inflow of USD 1 billion or Rs. ~8300 crore into Indian stocks. PTC also has a strong financial position indicated by Piotroski score of 7.
The company has posted consistently growing results for the past quarters and is cash flow positive through it. The results for Q1 FY24 are most likely to be released on 12th August.
The MSCI India Small Cap Index is designed to measure the performance of the small cap segment of the Indian market. With 415 (now 444) constituents, the index represents approximately 14% of the free float-adjusted market capitalization of the India equity universe .
The sector weightages for the index are: Industrials – 21.93%, Materials – 18.71%, Financials – 16.91%, Consumer Discretionary – 12.21%, Health Care – 9.25%, Information Technology – 7.18%, Communication Services – 3.98%, Real Estate – 3.82%, Consumer Staples – 2.98%, Utilities – 2.06%, Energy – 0.98%
PTC has stable promoter holding – 67.93% (+ 13 bps YoY), 0.24% ( + 22 bps Q1 FY24) by FIIs/ DIIs and the rest being public float. PTC stock has no short interest. PTC Industries Limited manufactures and sells high precision metal castings in India and internationally.It was incorporated in 1963 and is headquartered in Lucknow, India.
Written by Sandeep R
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