PTC India Ltd., incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 2178.62 Crore) operating in Power sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3795.00 Crore, down -36.87 % from last quarter Total Income of Rs 6011.39 Crore and down 1.03 % from last year same quarter Total Income of Rs 3834.42 Crore. Company reported net profit after tax of Rs 114.01 Crore in latest quarter.
Investment Rationale
The brokerage maintains BUY on PTC India with a SoTP-based target price of Rs120/share. It believes the company’s dilution of stake in its non-core holdings will result in value unlocking and lead to meaningful upward rerating of the stock price. Company had also announced a dividend policy in FY20, wherein it stated intent to pay out at least 50% of the annual profit. At CMP, the dividend yield is 10.4% on FY23E basis. The stock is currently trading at FY23E standalone P/BV of 0.5x.
Promoter/FII Holdings
Promoters held 16.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 28.7 per cent, DIIs 12.9 per cent and public and others 42.2 per cent.
