Shares of PTC Industries, a leading Indian manufacturer of precision metal components for critical applications, closed 10% up at a 4-month high of ₹14,466 apiece on Friday, January 3. This rally followed the company’s announcement that its wholly-owned subsidiary, Aerolloy Technologies, has become the first and only Indian private company to commission a vacuum arc remelting (VAR) furnace and produce aerospace-grade titanium alloy ingots.

This milestone places Aerolloy among a select group of global companies with the capability, infrastructure, and technology to manufacture titanium alloy ingots for critical aerospace and defence applications, the company noted in a regulatory filing on Thursday.

The VAR furnace, according to the company, has an annual melting capacity of 1,500 MT (based on double-melt quality standards) and can produce titanium alloy ingots up to 1,000 mm in diameter and weighing up to 10 MT.

Globally, the ability to produce aerospace-grade titanium alloy ingots using VAR technology is concentrated in only a few countries, including the United States, Russia, China, and select European nations such as France and the United Kingdom.

Through Aerolloy Technologies, PTC Industries manufactures and supplies titanium and superalloy castings for aerospace and defence applications within India and for exports.

Jim Collins, Chief Technology Officer (CTO) of PTC Industries, said, “The commissioning of this VAR facility represents a significant leap forward in our technological capabilities. With this state-of-the-art infrastructure, we are well-positioned to meet the stringent demands of aerospace-grade titanium alloy production, matching global standards and ensuring reliable quality. This is a proud moment for Aerolloy and for India as a whole.”

Expanding aerospace capabilities

PTC Industries is significantly expanding its aerospace castings capability by making a multimillion-dollar investment in a new state-of-the-art manufacturing facility on the newly acquired 50 acres of land in the Lucknow node of the Uttar Pradesh Defence Industrial Corridor.

This facility will be fully vertically integrated with a titanium and superalloy mill, producing aerospace-grade ingots, billets, bars, plates, and sheets in these critical and strategic materials.

In September, the company received an order from Israel Aerospace Industries (IAI) for the supply of titanium-cast components for aerospace applications. This is the first time that IAI is sourcing such cast components from India.

Additionally, the company secured a significant contract from BAE Systems to deliver titanium castings for the M777 Ultralightweight Howitzer.

Mukul Agrawal’s stake

As per the Q2FY24 shareholding pattern, ace investor Mukul Agrawal holds 1.60 lakh shares of PTC Industries, constituting 1.07% of the total paid-up capital. However, Agrawal has slightly reduced his stake, which stood at 1.16% in Q1FY24.

According to Trendlyne data, Mukul Agrawal has held PTC Industries stock in his portfolio since September 2022. During this period, the stock has delivered a meteoric return of 511%.

Stock up over 4,000% in 4 years

The stock has delivered phenomenal returns, advancing 4,203% over the last four years, rising from ₹334 to its current trading price of ₹14,432 apiece. In July 2024, it reached an all-time high of ₹15,650 per share, surpassing the ₹15,000 mark for the first time.

At its current levels, the stock is just 7.7% away from reclaiming its record high.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.