This smallcap stock has zoomed 37% in 2 days; up 322% from 52-week low

PTC Industries stock hit a record high of Rs 11,301, as it rallied 15% in Thursday's intra-day trade and has soared 45% in one week after the company reported a healthy 59.9% YoY growth in Q4 PAT.

Shares of PTC Industries hit a record high of Rs 11,301, as they rallied 15 per cent on the BSE in Thursday’s intra-day trade. In the past two trading days, the stock of manufacturer of high-quality high-precision metal components and materials for various critical and super-critical applications company has surged 37 per cent. It has zoomed 322 per cent from its 52-week low of Rs 2,680 touched on June 7, 2023.

In the past one week, PTCI Industries stock has soared 45 per cent after the company reported a healthy 59.9 per cent year-on-year (YoY) growth in profit after tax at Rs 14.72 crore in the March quarter (Q4FY24).  Earnings before interest, tax, depreciation, and amortization (ebitda) jumped 37.0 per cent at Rs 25.95 crore; margin expanded 370 bps to 33.9 per cent from 30.2 per cent in a year ago quarter. Total income grew 22 per cent at Rs 76.50 crore.

PTC Industries through its wholly-owned subsidiary Aerolloy Technologies Limited, the company is manufacturing and supplying Titanium and Superalloy castings for Aerospace and Defence applications within India as well as for exports.

The company is substantially expanding its Aerospace castings capability by making a multi-million-dollar investment in a new state-of-the-art manufacturing facility at the newly acquired 50 acres land in the Lucknow node of the Uttar Pradesh Defence Industrial Corridor. This facility will be a fully vertically integrated with a Titanium and Superalloy Mill, producing aerospace grade ingots, billets, bars, plates and sheets in these critical and strategic materials.

Titanium offers a plethora of opportunities across various industries, thanks to its exceptional properties and versatility. As a lightweight and strong metal with excellent corrosion resistance, titanium has become a sought-after material in aerospace and defence applications, where weight reduction is crucial for fuel efficiency and enhanced performance.

Titanium is a highly valued material in the defence industry due to its exceptional properties that enhance the performance and capabilities of military equipment and systems. Its strength-to weight ratio and resistance to corrosion make it a preferred choice for various defence applications.

With the Government providing an enhanced impetus to strengthen defence capabilities and reduce reliance on imports, India’s defence sector has seen significant reforms in recent years.

The domestic defence sector is witnessing a surge in order books and expanding revenue streams, driven by the Government’s emphasis on localisation. The Defence sector is in a sweet spot to witness significant growth over several years, given its significant market size, both domestically and internationally.