Mukul Agrawal-backed multibagger defence stock to keep under the radar as company report net sales of Rs 46.87 crore and net profit of Rs 4.90 crore in Q1FY25

The stock gave multibagger returns of 220 per cent in just 1 year, 1,200 per cent in 3 years and a whopping 8,400 per cent in 5 years.

PTC Industries Limited is a global leader in manufacturing precision metal components for critical and supercritical applications in sectors like defence, oil & gas, and marine. They specialize in producing castings, machined components, and fabricated parts using a wide range of advanced materials, including titanium alloys, stainless steel, and nickel-based alloys, to meet the stringent demands of these industries.

Key Business Updates for Q1FY25:

Develops Technology and Capability for Manufacturing of Single Crystal and Directionally Solidified Castings: Aerolloy Technologies Limited has mastered advanced casting technology, enabling the production of Single Crystal and Directionally Solidified blades and vanes crucial for aerospace applications. This breakthrough positions the company as a global pioneer in the field, capable of manufacturing complex airfoils with intricate cooling systems and superior material properties, marking a significant stride towards technological independence.

Partnership with leading defence entities under DTIS scheme in Indian Defence and Aerospace sector to advance the 'Make in India' initiative: PTC Industries has joined forces with top defence companies including Hindustan Aeronautics Limited, Bharat Dynamics Limited, Mishra Dhatu Nigam, Yantra India Limited and Uttar Pradesh Expressways Industrial Development Authority to establish an advanced materials testing facility in Lucknow as part of the 'Make in India' initiative for a project worth Rs 53 crore. This collaborative effort, supported by government funding, aims to provide affordable and cutting-edge testing infrastructure for the defense sector within the Uttar Pradesh Defence Industrial Corridor.

Update on ongoing CAPEX: PTC is establishing a cutting-edge Strategic Materials Technology facility in Lucknow, set to become the world's largest Titanium recycling and remelting hub. This facility will also produce Nickel/Cobalt Superalloys for the Aerospace and Defence industries. PTC has procured necessary equipment and is installing Electron Beam Cold Hearth Remelting and Vacuum Induction Melting furnaces. The company has already installed Vacuum Arc Remelting and Plasma Arc Melting furnaces, scheduled for commissioning in the second half of FY25.

Revenue fell from Rs 74.42 crore to Rs 50.52 crore on account of a modest decline in sales during the quarter, primarily attributed to temporary demand fluctuations and supply chain adjustments. Consequently, EBITDA and PAT decreased to Rs 13.69 crore and Rs 4.90 crore, respectively, from Rs 22.67 million and Rs 11.28 crore in Q1FY24. Despite the current quarter's performance, the company maintains optimism for a stronger financial outlook in the future.

Today, shares of PTC Industries Ltd gained 0.55 per cent to Rs 13,800 per share from its previous closing of Rs 13,724.20 per share. The stock’s 52-week high is Rs 15,650 and its 52-week low is Rs 4,350.

An ace investor, Mukul Agrawal owns 1.16 per cent stake as of June 2024 and DIIs increased their to 1.25 per cent in June 2024 compared to 0.44 per cent in March 2024. The stock gave multibagger returns of 220 per cent in just 1 year, 1,200 per cent in 3 years and a whopping 8,400 per cent in 5 years. Investors should keep an eye on this defence stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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