The share price of PTC Industries has been in base-building mode for about half a year. But as of the year-to-date (YTD) period, this Mukul Agrawal portfolio stock is still up 75%. Though it may bottom out around about 鈧�11,000 per share, PTC Industries’ share has seen modest buying activity each time it approached that level in recent sessions. A study by ICICI Securities predicts that there would be some value picking in the stock following the Trac acquisition.
On how Trac acquisition would impact PTC Industries share price, ICICI Securities said, 鈥淭rac鈥檚 manufacturing infrastructure includes advanced 5-axis and 3-axis CNC grinding capabilities, electro-discharge machining (EDM), deep hole drilling, fusion welding, airflow testing and surface treatment technologies, supported by its internal tooling manufacture. Trac鈥檚 core competency is in manufacturing high-value, complex components such as high-pressure and low-pressure turbine blades, nozzle guide vanes, heat shields and seal segments for aero engines, industrial gas turbines, and defence systems, catering to the major OEMs and engine programmes globally, including Rolls Royce, Safran and Siemens. Trac reported revenue of GBP 24.8mn in CY23. We expect the full financial impact of the acquisition to reflect in FY26.鈥�
Advanced superalloy castings, such as single crystal, directionally solidified, and equiaxed blades and vanes for use in industrial gas turbines, defence applications, and aero engines, have already been created by PTC Industries Limited, according to the brokerage. PTC would be able to provide an end-to-end solution with the acquisition of Trac, including precision machined, ready-to-fit components and alloy development. We believe that Trac’s skills, such as EDM and fusion welding, are exclusive and only offered by a small number of businesses. As a result, this is probably going to close the significant gap in engine production in India and complement the forthcoming MRO prospects and engine infrastructure in the home market.
On suggestion to stock market investors on PTC Industries shares, ICICI Securities said, “PTC Industries (PTC) announced the completion of its acquisition of Trac Precision Solutions Ltd. (Trac). In our expectation, Trac鈥檚 advanced machining technology will complement PTC鈥檚 capabilities in titanium and superalloy castings. Thus, in our view, PTC could 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 profoundly impact the indigenisation drive. We maintain BUY on PTC with a DCF-based unchanged TP of聽鈧�20,070.”
Ace investor Mukul Agrawal has 1.60 lakh PTC Industries shares, or 1.07 per cent of the company’s total paid-up capital, based on the shareholding pattern for the July鈥揝eptember 2024 quarter.
