- PTC Industries benefits from India's growth as a regional MRO hub for Rafale fighter jets
- India's pending order for 114 Rafale jets boosts regional MRO market to over 250 fighter jets
- PTC is a leading supplier of advanced materials like titanium amid supply chain shifts from China
A recent note from Goldman Sachs has highlighted India's private defence sector opportunity, listing up to six stocks that are poised to benefit from a booming $120 billion market. One of the key beneficiaries is PTC Industries, which is fast-emerging as a benefactor of India's projected transformation into a regional maintenance, repair and overhaul (MRO) hub, much of it has been led by a spurt in potential orders for the Rafale fighter jet.
As per the Goldman Sachs note, a pending order for 114 Rafale aircraft would solidify India as the world's largest user of the platform. This is coupled with existing orders and the 80 Rafale F-4 jets recently purchased by the UAE, which takes the total regional MRO opportunity to over 250 fighter jets.
This has created a high-volume ecosystem for spares and consumables that directly favours domestic aero-component players.
The Processed Materials Edge
This is music to the ears for PTC Industries, with the Goldman Sachs reports noting that the company is a standout player in this landscape, having emerged as a credible processed materials supplier.
As aerospace OEMs look to diversify supply chains away from China, PTC's expertise in complex machining and advanced materials, specifically titanium and superalloys, makes the company ideally positioned to gain from the China+1 shift.
This is especially relevant considering the fact that current programs, such as the local sourcing of components for the M88, which powers the Rafale, are expected to provide multi-year revenue visibility for component specialists.
Keeping that in mind, Goldman Sachs believes PTC is riding a multi-year growth tailwind, especially amid order book visibility from global engine suppliers until 2035. The firm maintains a 'buy' rating on PTC Industries, citing its unique role in the evolving domestic defence Total Addressable Market (TAM).
As India transitions from simple "Build to Print" to "Build to Specifications," PTC remains a top-tier pick for exposure to advanced defence materials.
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