Goldman Sachs Adds PTC Industries to APAC Conviction List, Predicts Strong Growth

Goldman Sachs has added PTC Industries Limited to its prestigious Asia-Pacific Conviction List, signaling strong confidence in the company's future performance. The global brokerage firm highlighted that PTC Industries, with existing contracts from major global players for both commercial and defence platforms, is well-positioned to directly benefit from the expansion of India's aerospace engine ecosystem. Goldman Sachs projects that PTC Industries will achieve the highest earnings growth among its coverage, forecasting an annualized rate of 123% on a compounded basis through to Fiscal Year 2028. The firm has set a 12-month target price of Rs 24,725 for the stock, indicating a potential upside of approximately 43% from current levels. Key catalysts identified for this conviction call include the planned commissioning of its forging press by Q4FY26, approval of Titanium ingots by Q1FY27, commissioning of the Electron Beam Cold Hearth Remelting (EBCHR) furnace by Q1FY27, and the commissioning of its Plate/Sheet Rolling mill and Bar rolling mill by Q1FY27. Analysts believe that PTC Industries' combined advantages in Capabilities, Contracts, and Capacity (3Cs) will uniquely position it in the Titanium and Superalloys sectors. Furthermore, the recommendation is supported by strong macro trends: the projected growth of India's domestic defence market to Rs 10 trillion over the next two decades, increased opportunities for indigenisation in the defence sector, and the government's target to boost defence exports significantly. PTC Industries' development of proprietary processes for recycling and refining titanium into aerospace-grade feedstock, coupled with its supply to global majors and the upcoming world's largest single-site recycled titanium capacity, underpins this outlook. Impact 8/10 Difficult terms APAC Conviction List: A list of stocks that a brokerage firm strongly believes will perform well in the Asia-Pacific region. Commercial platforms: Aircraft and equipment used for non-military, business purposes, such as passenger jets. Defence platforms: Aircraft, vehicles, and equipment used by the military. Aerospace engine ecosystem: The network of companies and processes involved in manufacturing, maintaining, and supplying parts for aircraft engines. Earnings growth: The increase in a company's profit over a period. Annualised rate: The rate of return or growth over a year, used for standardization. Compounded basis: Growth calculated on the initial principal and accumulated interest/profits from previous periods. Implied upside: The potential percentage increase in a stock's price based on its current price and a target price. Catalysts: Events or factors that can trigger a significant change or improvement in a stock's performance. Commissioning: The process of bringing a new facility or piece of equipment into active service. Forging press: A machine used to shape metal parts by applying immense pressure. Titanium ingots: Blocks of molten titanium that have cooled and solidified, used as raw material. Electron Beam Cold Hearth Remelting (EBCHR) furnace: A specialized furnace used to purify metals like titanium, crucial for aerospace applications. Rolling mill: Machinery used to flatten and shape metals into sheets, bars, or other forms. Superalloys: Metals or alloys that can operate at very high temperatures and maintain mechanical strength. Indigenisation: The process of developing and producing goods or technologies domestically rather than relying on imports. Total Addressable Market (TAM): The total revenue opportunity available for a product or service. Defence exports: Selling military equipment and technology to other countries. Proprietary processes: Unique methods or techniques developed and owned by a company. Aerospace-grade feedstock: High-quality raw material suitable for use in the aerospace industry. Castings: Metal parts formed by pouring molten metal into a mold. Asset turnover: A financial ratio showing how efficiently a company uses its assets to generate sales. PAT margins: Profit After Tax margins, indicating the percentage of revenue left after deducting all taxes. Return on Equity (RoE): A measure of financial performance calculated by dividing net income by shareholders' equity.