PTC Industries shares: What Honeywell pact signals; target price & more

Antique Stock Broking maintained its positive view on PTC Industries Ltd following the agreement with Honeywell Aerospace Technologies, noting that recent memorandum of understandings (MoUs) with Safran Aircraft Engines, Dassault Aviation and Bharat Dynamics Ltd provided long-term order book visibility.

PTC Industries, through its wholly owned subsidiary Aerolloy Technologies, announced a long-term agreement with Honeywell Aerospace Technologies for the supply of titanium and superalloy precision investment castings for a wide range of aerospace applications, including critical engine components. Antique Stock Broking said the agreement underscored India’s readiness to supply complex, high-value aerospace parts to global original equipment manufacturers.

Antique noted that PTC Industries had signed several significant agreements in recent months with global defence and aerospace majors and believed that the order pipeline remained strong. The brokerage also referred to the company’s recently disclosed memorandum of understanding between Aerolloy Technologies and Safran Aircraft Engines to cooperate on the manufacturing of military aircraft engines, which it viewed as meaningful in scale and supportive of long-term growth.

Antique retained its earnings forecasts and reiterated its 'Buy' rating on the stock with an unchanged target price of Rs 23,005, valuing the company at 50 times FY28 earnings. The brokerage projected Ebitda of Rs 982 crore in FY28 and Rs 2,300 crore in FY30, with net profit expected to rise more than 11 times from FY25 levels to Rs 688 crore in FY28 and Rs 1,600 crore in FY30. Given what it described as a formidable moat, high entry barriers, strong profit growth and superior return on capital employed, Antique said the company was likely to command a valuation premium in the coming years. At the target price, the stock implied 26 times FY29 earnings and 20 times FY30 earnings, levels the brokerage viewed as still below global peers despite the stated acceleration in PTC’s growth trajectory beyond FY30.

Antique highlighted that the Honeywell agreement involved Aerolloy supplying precision titanium and superalloy investment castings supported by its integrated capabilities spanning materials production to finished castings. The company had earmarked dedicated capacity for Honeywell programmes, which Antique said should provide long-term revenue visibility while strengthening India’s position as a supplier of high-value aerospace hardware.

The brokerage also pointed to the recent Lokarpan ceremony for PTC Industries’ titanium and superalloy materials plant at Aerolloy Technologies’ Strategic Materials Technology Complex, describing it as a milestone in India’s push for self-reliance in strategic materials under the government’s Aatmanirbhar Bharat initiative.

Antique added that the company’s multiple MoUs —including those with Bharat Dynamics Ltd for propulsion systems and guided-weapon technologies; with Safran Aircraft Engines for military engine manufacturing; and with Dassault Aviation for potential supply of titanium and superalloy materials and castings for Rafale and other aircraft—provided visibility into a long-duration order pipeline.