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This defense stock soared 114% in last six months, rallied 214% in one year

Shares of PTC Industries, an Indian defense manufacturing company rose 5.2 per cent at Rs 11,753.95 per share on the BSE in Tuesday's early morning trades

Photo: Bloomberg

Photo: Bloomberg

SI Reporter New Delhi

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Shares of PTC Industries, an Indian defense manufacturing company rose 5.2 per cent at Rs 11,753.95 per share on the BSE in Tuesday’s early morning trades. The stock of the company has surged 113.97 per cent in the last six months, while rallying 214 per cent in the last one year. 

The recent surge in the stock price, however, came after the company partnered with other defence and aerospace players to build a testing facility in Uttar Pradesh, the company disclosed in an exchange filing on Monday. 

Under the Defence Testing Infrastructure Scheme (DTIS), the defence and aerospace companies are building  a green field defence testing facility in the Lucknow node of the UP Defence Industrial Corridor. 

This facility, named “Advanced Materials (Defence) Testing Foundation” is a collaborative effort among key industry players including Hindustan Aeronautics Limited, Bharat Dynamics Limited, Mishra Dhatu Nigam, Yantra India Limited, PTC Industries Limited and Uttar Pradesh Expressways Industrial Development Authority. 

The land for the facility is being provided by the Uttar Pradesh Expressway Industrial Development Authority. The Government of India will fund 75 per cent of the project cost, with the remaining 25 per cent funded by the SPV members, totalling an approximate cost of Rs. 53 crores.  

This Defence Materials testing facility will help to further substantiate the integrity and reliability of advanced materials being manufactured by PTC, ensuring superior quality and compliance with stringent defence standards for Titanium and Super Alloys, the company said in a statement. 

The company's total income for Q4FY24 reached Rs 76.5 crore, indicating a 22 per cent increase Year-on-Year (YoY) compared to Rs 62.69 crore in Q4FY23. However, the total income for the entire FY24 amounted to Rs 270.26 crore, marking a 19.2 per cent increase from Rs 226.73 crore in FY23. 

PTC Industries' profit after tax (PAT) for Q4FY24 amounted to Rs 14.72 crore, an increase of 59.9 per cent YoY compared to Rs 9.2 crore in Q4FY23. Similarly, the company's PAT for FY24 stood at Rs 42.22 crore, showing a rise of 63.5 per cent from Rs 25.82 crore in FY23.

At 09:54 AM; the stock of the company was trading 4.02 per cent higher at Rs 11,621 per share. By comparison, the BSE Sensex was flat at, marginally up by 0.02 per cent.

The shares of the company are trading at price to earnings valuation of 648 times with an earning per share of Rs 17.24, shows data from BSE. 

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First Published: Jun 11 2024 | 10:04 AM IST

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