Shares of PTC Industries gained 4.3% on Monday, reaching ₹11,550 during intraday trade. The stock's jump followed the company's strong Q2FY25 results, which showcased remarkable growth, reversing a three-day losing streak. Such performance highlights the opportunities available for those looking to invest in stocks.
PTC Industries reported a total income of ₹80.79 crore for Q2FY25, a 34% year-on-year (YoY) increase from ₹60.28 crore in Q2FY24. However, the first half of FY25 (H1FY25) saw a slight decline in total income, standing at ₹131.31 crore compared to ₹134.70 crore in the same period last year.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 60.8% YoY to ₹29.66 crore in Q2FY25, reflecting robust operational growth. For H1FY25, EBITDA reached ₹43.35 crore, up 5.4% from ₹41.11 crore in H1FY24. EBITDA margins expanded significantly, standing at 36.7% for Q2FY25 and 33.0% for H1FY25, representing a YoY growth of 611 basis points and 249 basis points, respectively.
The company's net profit surged by 112.7% YoY to ₹17.31 crore for Q2FY25, compared to ₹8.14 crore in Q2FY24. For H1FY25, profit after tax (PAT) stood at ₹22.20 crore, reflecting a growth of 14.3% YoY. These figures underscore the potential for investors seeking to invest in stocks with growth potential strategically.
PTC Industries made strategic advancements during the quarter, including acquiring a hot rolling mill to bolster its titanium alloy component production for aerospace and defence applications. Additionally, the company secured a significant contract from BAE Systems to supply titanium castings for the M777 Ultralightweight Howitzer.
Further strengthening its portfolio, PTC Industries received an order from Israel Aerospace Industries for titanium-cast components. This marked the first instance of such components being sourced from India, reflecting the company's growing reputation in the global market. These developments add value for those planning to invest in stocks within the defence and aerospace sectors.
PTC Industries has delivered exceptional returns over the past two years, witnessing a remarkable 375% increase since September 2022. While the stock recently faced profit booking and is currently trading 28% below its all-time high of ₹15,650 in July 2024, its strong fundamentals present opportunities for growth.
The stock is trading above its key moving averages, including the 10-day, 20-day, and 200-day averages, signalling positive momentum. Investors keen to invest in stocks may find this a favourable time to consider PTC Industries, especially with its support level at ₹11,000 and a potential rebound beyond ₹11,500.
PTC Industries' consistent financial growth, strategic initiatives, and global partnerships highlight its strong potential for long-term value creation. Its focus on advanced engineering solutions in aerospace and defence aligns well with the increasing demand in these sectors.
For those looking to invest in stocks with a history of delivering high returns, PTC Industries offers a compelling case. With a mix of innovation and strong financial performance, it remains a notable option for portfolio diversification.
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