PTC India Ltd.
ISIN: INE877F01012 • Market Cap: ₹4,604 Cr
The 5-Pillar Quality Audit for PTC India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (4.3%), Return on Capital Employed (13.7%), and equity compounding (15.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.51 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.8%) and 3Y PAT CAGR (9.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 9.05 vs PEG of 2.59 and Dividend Yield of 5.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 16.2%, backed by 41.2% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 9.05)
Trading at a P/E multiple of 9.05, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (41.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 41.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.8%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Power)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Power space.
Quantitative Strategy Eligibility
Checking PTC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 60/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Power Sector Peer Comparison
Compare PTC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| PTC India Ltd. (PTC)Current | 60/100 | ₹4,604 Cr | 9.05 | 13.7% | 0.51 | — |
| Adani Power Ltd. (ADANIPOWER) | 70/100 | ₹3.93 Lakh Cr | 27.56 | 15.7% | 0.82 | View |
| NTPC Ltd. (NTPC) | 69/100 | ₹3.25 Lakh Cr | 11.69 | 8.3% | 1.32 | View |
| Power Grid Corporation of India Ltd. (POWERGRID) | 64/100 | ₹2.44 Lakh Cr | 15.36 | 10.6% | 1.47 | View |
| Adani Green Energy Ltd. (ADANIGREEN) | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | View |
| Adani Energy Solutions Ltd. (ADANIENSOL) | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | View |
Frequently Asked Questions: PTC India Ltd.
Q:What is the 5-Pillar Fundamental Score for PTC India Ltd. (PTC)?
PTC India Ltd. has a RupeeTools Fundamental Score of 60/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (51/100), Financial Health (72/100), Growth (48/100), Valuation (73/100), and Ownership Quality (60/100).
Q:Is PTC fundamentally strong for long-term investment?
PTC currently holds a moderate quality rating of 60/100. While it operates in the Power sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does PTC pass the Coffee Can Investing filter?
No. PTC does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does PTC compare against other Power peers?
Within India's Power sector, PTC trades at a P/E of 9.05 and generates an ROCE of 13.7%. Compare its 5-Pillar score of 60/100 against top sector peers like Adani Power Ltd. (70/100), NTPC Ltd. (69/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.