ICICI Securities sees 75% upside in THIS Mukul Agrawal portfolio stock. Should you buy? | Stock Market News
Source: Live Mint
Mukul Agrawal portfolio: PTC Industries’ share price has remained under base-building mode for nearly six months. However, this Mukul Agrawal portfolio stock is still 75 per cent up in year-to-date (YTD) time. However, PTC Industries share has witnessed some buying interest every time it came close to the ₹11,000 apiece mark in recent sessions, signalling the possibility of bottoming out at around ₹11,000 per share mark. According to ICICI Securities research report, after the Trac acquisition, the stock is expected to witness some value picking. The brokerage has given a ‘buy’ tag to this Mukul Agrawal stock, predicting a long-term target price of ₹20,070 per share.
Trac acquisition in focus
On how Trac acquisition would impact PTC Industries share price, ICICI Securities said, “Trac’s 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 own internal tooling manufacture. Trac’s 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.”
The brokerage said that PTC Industries Limited has already developed the technology for advanced superalloy castings, including single crystal, directionally solidified, and equi-axed blades and vanes for aero engines, industrial gas turbines, and defence applications. The acquisition of Trac would enable PTC to offer an end-to-end solution – from alloy development to precision machined, ready-to-fit components. In our view, Trac’s capabilities, such as EDM and fusion welding, are unique and available with only a handful of companies. Hence, this is likely to plug the critical gap in engine manufacturing in India and would dovetail into the upcoming MRO opportunities and engine infrastructure in the domestic 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’s advanced machining technology will complement PTC’s 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 ₹20,070.”
Mukul Agrawal shareholding
According to PTC Industries’ shareholding pattern for the July to September 2024 quarter, ace investor Mukul Agrawal owns 1.60 lakh PTC Industries shares, which is 1.07 per cent of the company’s total paid-up capital.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
