PTC Industries Limited

Industrials — Metal Fabrication · NSE

₹24,600.00−₹445.00 (−1.78%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of PTC Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PTC Industries Limited manufactures and sells high-precision metal castings in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees575

Annual revenue₹599 Cr

How does it make money?

Turns over ₹599 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 575 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE18.7%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 80.2% and earnings to grow about 134.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+80.2%

Est. earnings growth+134.0%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +178% while net margin moved +41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+178%

Margin effect+41%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 293.8x is demanding — it needs sustained high growth to justify
✓ P/E is 29% below its own historical median of 414.9x — cheap by its own standards
✗ P/B of 23.99x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

293.8x

3Y Median

414.9x

40 monthly readings · mean 414.9x · range 261.6x–712.0x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 29% below its 3y median of 414.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 2316% above the peer median of 12.2x.

vs. its own history

Cheap

414.9x median over 40 months · -29%

vs. sector peers

Expensive

12.2x median of 4 peers · +2316%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

227.2x

PEG

5.08

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 30.7% to 28.8% over 3 years.
Return on capital is falling
ROCE has declined from 11.1% to 7.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 317% against revenue up 178% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 285% against revenue up 178% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 48% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 29% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 30.7% to 28.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 317% against revenue up 178%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 2316% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 31% a year✓ 40.7% CAGR
Latest reported year was 97.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 28.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹386 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹38,984 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

293.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

23.99x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹83.74

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

97.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

465.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹386 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

75.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.5%

Good

Healthy core-business profitability

Net Margin

18.0%

Good

Strong bottom-line conversion

Current Ratio

3.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

23345.8 / 22107.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹215 Cr	₹252 Cr	₹303 Cr	₹599 Cr	+40.7%
EBITDA	₹66 Cr	₹82 Cr	₹108 Cr	₹173 Cr	+37.8%
EBITDA Margin	30.7%	32.5%	35.5%	28.8%	—
PAT (Net Profit)	₹26 Cr	₹42 Cr	₹61 Cr	₹102 Cr	+57.9%
EPS	₹19.54	₹30.35	₹41.33	₹67.74	+51.3%
ROE	8.4%	6.5%	4.4%	6.7%	—
ROCE	11.1%	9.0%	5.8%	7.9%	—
Total Debt	₹177 Cr	₹182 Cr	₹61 Cr	₹261 Cr	+13.9%
Free Cash Flow	-₹49 Cr	-₹213 Cr	-₹176 Cr	-₹386 Cr	—

🟢 Revenue has grown at 40.7% a year over 3 years.

🟢 EBITDA has grown at 37.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.7% to 28.8% over 3 years (-1.8 pts).

🟢 PAT (Net Profit) has grown at 57.9% a year over 3 years.

🟢 EPS has grown at 51.3% a year over 3 years.

🔴 ROE has fallen from 8.4% to 6.7% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 11.1% to 7.9% over 3 years (-3.2 pts).

🔴 Total Debt has grown at 13.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,956 Cr

Total Liabilities

₹449 Cr

Cash & Equivalents

₹35 Cr

Operating Cash Flow

-₹69 Cr

Capex

-₹317 Cr

Shareholding (proxy)

Institutional Holding

8.7%

Insider Holding

63.2%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹26,395

+7.3% vs CMP

Target Range

₹24,415 – ₹29,000

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 mixed5 general

PTC Industries (NSEI:PTCIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

PTC Industries Secures ₹1,800 Crore Through QIP To Fund Aerospace And Defence Growth

Sahi, 13 Oct

PTC Industries rallies 5%, hits record high in weak market; here's why

Business Standard, 07 Oct

PTC Industries among 4 stocks hitting 52-week highs; rally up to 15% in a month

The Economic Times, 13 Oct

PTC Industries raises ₹1,800 crore to expand defence, aerospace manufacturing in Lucknow

The Times of India, 15 Oct

PTC Industries Share Price: Rs 1,800 crore QIP announced; what investors need to know

Zee Business, 07 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑