PTC Industries At Record High After Setting Up Defence Testing Facility
The facility is set up with industry leaders like HAL and BDL to cope with the expenses of state-of-the-art testing infrastructure.
Shares of PTC Industries Ltd. hit a record high in early trading on Tuesday. The company saw its stock jump after it set up a greenfield defence testing facility in Lucknow in collaboration with leading entities under the Defence Testing Infrastructure Scheme.
The facility—Advance Materials (Defence) Testing Foundation—is set up to cope with the expenses of state-of-the-art testing infrastructure, according to an exchange filing. This facility is built in collaboration with Hindustan Aeronautics Ltd., Bharat Dynamics Ltd., Mishra Dhatu Nigam Ltd., Yantra Ltd., PTC Industries Ltd., and the Uttar Pradesh Expressways Industrial Development Authority, the filing said.
The project's estimated total cost is Rs 53 crore. The government will fund 75% of the project cost, and the remaining 25% will be funded by Special Purpose Vehicle members, the exchange filing said.
The DTIS scheme is formulated to give easy access to manufacturers to testing facilities, as these are capital intensive and not viable for industry players to set up.
Shares of PTC Industries has risen 5.50% to their record high of Rs 11,750.00 apiece. It was trading 3.71% higher at Rs 11,550.00 as of 9:47 a.m., compared to 0.05% decline in the NSE Nifty 50 index.
The stock has gained 212.8% in last 12 months and 92.49% on year to date basis. Total traded volume on NSE so far in the day stood at 0.14 times its 30-day average. The relative strength index was at 74.07, which implied the stock is overbought.
One analysts tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.8%.
