Mukul Agrawal Portfolio Stock: ICICI Securities Sees 74% Potential Upside; BUY PTC?

For over 56 years, PTC Industries Limited has been producing top-notch technical components for a range of critical and super-critical applications. More than 75% of PTC's products are exported to different nations worldwide, where they are used by well-known clients including Rolls-Royce, Siemens, GE, Alstom, Metso, and Emerson. The broking firm ICICI Securities has maintained a buy rating on the stock for a target price of Rs 20,070, which indicates a potential upside of more than 74% from the current market price of Rs 11,507. This comes after PTC Industries (PTC) recently announced the completion of its acquisition of Trac Precision Solutions Ltd. (Trac).

"PTC Industries (PTC) announced the completion of its acquisition of Trac Precision Solutions Ltd. (Trac). Trac's advanced machining technology in our expectation will complement PTC's capabilities in titanium and superalloys castings. Thus, in our view, PTC would be able to offer complete solutions to its customers while exercising full control over the manufacturing process of complex castings, including aerofoils. Further, we believe that the acquisition plugs a critical gap in engine-manufacturing technology in India, which may have a profound impact on the indigenisation drive," said ICICI Securities in a note.

"PTC has already developed the technology for advanced superalloys castings, including single crystal, directionally solidified, and equi-axed blades and vanes for aero engine, industrial gas turbine, and defence applications. The acquisition of Trac would enable PTC to offer an end-to-end solution - from alloy development to precision machined, ready to fit components. In our view, some of Trac's capabilities, such as EDM and fusion-welding, are unique and available with only a handful of companies. Hence, this is likely to plug the critical gap in engine manufacturing in India and would dovetail into the upcoming MRO opportunities and engine infrastructure in the domestic market," the research analysts of the broking firm further added.

PTC Industries Share Price Target

"We believe that the acquisition of Trac adds significant capabilities at the upper end of technical spectrum. While this complements the existing titanium and superalloy castings, produced by the PTC, we are upbeat on the critical technological gap it bridges in the domain of engine infrastructure and enhances the capability of the country in an area, which could have far-reaching impact on competitive advantage of domestic defence platforms. We maintain BUY on PTC stock with an unchanged TP of INR 20,070 on the DCF-based methodology," said ICICI Securities.

Shareholding of Mukul Agrawal In PTC Industries

One of the popular investors Mukul Agrawal holds 1.60 lakh PTC Industries shares, or 1.07 percent stake in the company's total paid-up capital, based on the shareholding pattern for the July-September 2024 quarter available on BSE.