Multibagger PTC Industries shares jump 10% to hit one-year high; time to buy, sell or hold?

Shares of PTC Industries Ltd on Monday surged 10 per cent to hit their 52-week high of Rs 5,507.20. The stock eventually settled 9.65 per cent higher at Rs 5,489.65 over its previous close of Rs 5,006.55. The multibagger counter has zoomed 121.69 per cent in six months, 118.56 per cent in 2023 so far and 190.75 per cent in the past one year.

The company, in an exchange filing, said Aerolloy Technologies Ltd has been making continuous progress on its transformative capital investment project at the Defence Industrial Corridor (DIC) Campus in Lucknow. Aerolloy Tech is a wholly-owned subsidiary of PTC Industries.

"This project involves the setting up of a fully integrated material manufacturing facility for all critical and strategic materials including Titanium Alloys, Nickel and Cobalt Superalloys on the 50-acre plot dedicated to enhancing Aerolloy Tech's capabilities for aerospace and defence applications. The company has already successfully completed the acquisition of the following equipment," it further stated.

On the earnings front, profit after tax came at Rs 11.28 crore in June quarter (Q1 FY24) compared to Rs 2.88 crore in the year-ago period, marking a significant growth of 292.10 per cent. Total income was up 57.70 per cent at Rs 74.42 crore in Q1 FY24 as compared to Rs 47.18 crore in Q1 FY23.

EBITDA stood at Rs 22.67 crore in the June 2023 quarter compared to Rs 12.01 crore in Q1 FY23, a growth of 88.80 per cent (year-on-year) with an EBITDA Margin of 30.50 per cent in Q1 FY24, the company mentioned.

Support on the counter could be seen at Rs 5,263, a technical analyst said.

Market expert Ravi Singh said, "With robust financials and growth prospects, PTC Industries is showing strength on the technical outlook too. The daily and weekly chart patterns are indicating a strong trend in the counter. The RSI and MACD are in the buy zone and the long-term moving averages are supporting the current trend."

Pavitraa Shetty, Co-owner, Tips2trades, said, "PTC Industries is bullish but also overbought on the daily charts with next resistance at Rs 6,162. Investors should book profits at current levels as a daily close below the support of Rs 5,263 could lead to target of Rs 4,364 in the near term."

PTC Industries is a supplier of high-precision metal components for critical and super-critical operations across a wide range of segments including aerospace, defence and industries.

Meanwhile, Indian equity benchmarks turned positive in fag-end trade today amid a highly volatile session, aided by technology and consumer good stocks. The 30-share BSE Sensex 79 points or 0.12 per cent to close at 65,401, while the broader NSE Nifty pack edged 6 points or 0.03 per cent to end the day at 19,435.