Sharekhan starts coverage on PTC India with 'buy'

Sharekhan has initiated coverage on PTC India with a "buy" rating and a price target of 114 rupees on a de-risked business model and strong growth outlook.

"Given its niche positioning, de-risked business model and strong growth outlook with an improving core RoE (return on equity), PTC's valuations are quite attractive," the brokerage said in a note, adding RoE would improve to 9.9 percent in FY2013 from 4.5 percent in FY2010.

Driven by the strong growth in trading volumes and an uptick in trading margins, the company's operating profit is expected to grow a compunded 54 percent in the next three fiscals, it said. At 11.36 a.m., shares of the company were up 0.99 percent to 81.65 rupees.