MSTC Ltd. (MSTCLTD) AI Stock Analysis

• Market Cap: ₹37.41B
• Dividend Yield: 8.79%
• Average Volume (3M): 23.23K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 2.13
• Revenue Growth: -58.05%
• EPS Growth: 97.11%
• Country: IN
• Employees: 290
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 6.01
• Shares Outstanding: 70,400,000
• 10 Day Avg. Volume: 19,455
• 30 Day Avg. Volume: 23,231
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹569.00
• Price Target Upside: 9.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹569.00 ▲(9.95% Upside)

MSTC Ltd. receives a strong score driven by its robust financial performance and attractive valuation. The company's high profitability and effective leverage management are significant strengths, although the revenue decline is a concern. The technical analysis indicates positive momentum, but resistance levels could pose challenges. The valuation suggests the stock is undervalued, enhancing its investment appeal.

MSTC Ltd. Business Overview & Revenue Model

Company Description

MSTC Limited engages in marketing, e-commerce, and scrap recovery and allied job businesses in India. It is involved in the sourcing, purchase, and sale of industrial raw materials, such as heavy melting scrap, low-ash metallurgical coke, HR coil, naphtha, crude oil, coking coal, steam coal, line pipes, etc. for users, as well as traders in the steel, oil and gas, and private and public power sectors. The company also provides e-auction services for sale of ferrous and non-ferrous scraps, surplus stores, minerals, old plant and machineries, e-waste, coal and non-coal mine blocks, iron ore, pulses, grins, oil seeds, land parcels, agricultural produce, tea, gorgon nut, tendu leaves, timbers, and other forest produce, etc; and buildings, apartment, banks' NPAs and DRT, organic agri produce assets etc. In addition, it operates various other portals for petroleum products, organic farming, agricultural product trading, and other activities. Further, the company offers tender and auction, recycling, and e-procurement services. It serves central/PSUs/state government departments and private institutions. The company was formerly known as Metal Scrap Trade Corporation Limited and changed its name to MSTC Limited in September 1994. MSTC Limited was incorporated in 1964 and is headquartered in Kolkata, India.

How the Company Makes Money

MSTC Ltd. generates revenue through several streams, primarily from its e-commerce services, where it earns commission fees on the transactions conducted through its platforms. The company also engages in trading activities, buying and selling various commodities, which contributes to its earnings. In the recycling sector, MSTC operates joint ventures and partnerships that allow it to earn income from processing and recycling waste materials, including e-waste. Additionally, MSTC has significant collaborations with government bodies, providing auction services for surplus and obsolete materials, which further bolster its revenue.

MSTC Ltd. Financial Statement Overview

Summary

MSTC Ltd. demonstrates strong profitability and effective leverage management, with impressive net profit margins and return on equity. The significant decline in revenue highlights a potential vulnerability in maintaining growth momentum, while cash flow improvements signal enhanced liquidity.

Income Statement

MSTC Ltd. exhibits strong profitability with a robust net profit margin of 130.91% in the latest year, albeit with a notable decline in total revenue of 58.6% from the previous year. The gross profit margin remains healthy at 100%, indicating efficient production cost management. EBITDA margin is impressive at 166.35%, reflecting strong operational performance. However, the significant revenue drop could pose a risk to future earnings stability.

Balance Sheet

The balance sheet presents a sound financial position with a low debt-to-equity ratio of 0.20, indicating conservative leverage. The equity ratio stands at a solid 34.85%, showcasing good asset financing through equity. Return on equity is exceptional at 55.12%, demonstrating strong profitability relative to shareholder contributions. However, the reduction in total assets over the year suggests potential challenges in asset management or strategic downsizing.

Cash Flow

Cash flow analysis reveals substantial improvement in free cash flow, which turned positive with a growth rate of 153.05% year-over-year. The operating cash flow to net income ratio is 0.64, indicating efficient cash conversion from net income. Despite these strengths, previous years showed volatility in operating cash flows, which may raise concerns about cash flow consistency in future periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.42B	3.11B	7.51B	7.21B	4.27B	3.82B
Gross Profit	4.23B	1.75B	6.88B	6.40B	1.98B	1.52B
EBITDA	6.01B	2.60B	3.65B	3.54B	2.56B	1.63B
Net Income	4.18B	4.07B	2.04B	2.42B	1.99B	1.13B
Balance Sheet
Total Assets	0.00	21.18B	22.49B	26.89B	20.14B	22.48B
Cash, Cash Equivalents and Short-Term Investments	10.28B	14.11B	11.48B	9.21B	7.46B	7.46B
Total Debt	0.00	1.45B	1.45B	1.45B	1.50B	1.54B
Total Liabilities	-9.71B	13.80B	13.61B	19.04B	13.62B	16.90B
Stockholders Equity	9.71B	7.38B	8.89B	7.87B	6.54B	5.58B
Cash Flow
Free Cash Flow	0.00	2.36B	-4.44B	8.65B	957.20M	6.45B
Operating Cash Flow	0.00	2.60B	-3.12B	8.44B	1.70B	6.81B
Investing Cash Flow	0.00	1.65B	-2.44B	-5.51B	-715.71M	112.36M
Financing Cash Flow	0.00	-2.89B	-964.48M	-1.19B	-983.20M	-1.07B

MSTC Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 517.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MSTCLTD, the sentiment is Positive. The current price of 517.5 is above the 20-day moving average (MA) of 500.92, above the 50-day MA of 495.88, and below the 200-day MA of 536.68, indicating a neutral trend. The MACD of 13.30 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MSTCLTD.

MSTC Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRLLOG	73 Outperform	50.23B	22.88	16.87%	4.36%	8.04%	221.22%
MSTCLTD	71 Outperform	₹37.41B	8.80		8.79%	-58.05%	97.11%
BALMLAWRIE	67 Neutral	36.65B	13.52	13.51%	4.03%	7.25%	1.12%
PSPPROJECT	63 Neutral	30.47B	139.82	4.67%	―	-7.97%	-82.75%
ALLCARGO	55 Neutral	32.22B	-46.48	1.47%	6.37%	17.82%	-314.42%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

MSTC Ltd. Corporate Events

MSTC Ltd. Transitions to New Share Transfer Agent

MSTC Ltd. has announced the signing of a tripartite agreement with its existing and new share transfer agents, Alankit Assignments Ltd. and Bigshare Services Pvt. Ltd., respectively. This agreement, effective from August 20, 2025, marks a strategic transition in the company’s share transfer operations, potentially enhancing efficiency and stakeholder engagement.

MSTC Ltd. to Transfer Unclaimed Dividends and Shares to IEPF

MSTC Ltd. has announced the transfer of unclaimed dividend amounts and equity shares to the Investor Education and Protection Fund (IEPF) as per the Companies Act, 2013. Shareholders are advised to claim their dividends by November 1, 2025, to prevent their transfer to the IEPF. This move is in compliance with regulations and impacts shareholders who have not claimed dividends for seven consecutive years. The company has provided details on its website for shareholders to check unclaimed amounts and initiate claims if necessary.