Hold PTC India, target Rs 95: Sharekhan

Sharekhan has a hold call on PTC India Ltd. with a target price of Rs 95. The current market price of PTC India Ltd. is Rs 81.6.
Time period given by the brokerage is a year when PTC India Ltd. price can reach defined target. PTC India Ltd., incorporated in the year 1999, is a mid-cap company with a market cap of Rs 2397.67 crore.

Investment rationale by Sharekhan
The management has given a steady volume growth outlook, driven by signing of new PPA and commission of project. However, the shift of volumes towards short-term volume (currently 53% mix) will exert pressure on margins. In contrast, PTC has delivered strong realisation in FY2018 and the management expects the realisation to remain on the higher level, driven by higher merchant prices. On this backdrop, we have tweaked our earnings estimates for FY2019 and FY2020E. Correction in the stockprice provides a better opportunity to long-term investor given the steady earnings, higher dividend yields and decent return ratios. Hence, we maintain our Hold with a revised price target of Rs. 95.