MSTC Ltd. (MSTCLTD) AI Stock Analysis

• Market Cap: ₹38.66B
• Dividend Yield: 9.13%
• Average Volume (3M): 26.77K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 2.15
• Revenue Growth: -48.50%
• EPS Growth: 92.06%
• Country: IN
• Employees: 290
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 6.75
• Shares Outstanding: 70,400,000
• 10 Day Avg. Volume: 43,402
• 30 Day Avg. Volume: 26,774
• PEG Ratio: 0.06
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 11.71
• P/FCF Ratio: 15.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹516.00 ▲(4.70% Upside)

MSTC Ltd.'s overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's profitability and effective leverage management are significant strengths, while the decline in revenue and bearish market momentum present notable risks.

Positive Factors

Profitability

Strong profitability metrics indicate efficient operations and cost management, which can sustain long-term earnings and competitive positioning.

Leverage

Conservative leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Cash Flow Improvement

Improved cash flow generation supports operational resilience and provides capital for strategic investments, enhancing long-term growth prospects.

Negative Factors

Revenue Decline

A sharp revenue decline could undermine future earnings stability and growth, challenging the company's ability to maintain market share and competitive edge.

Asset Management

Declining assets may indicate inefficiencies or strategic missteps, potentially impacting the company's ability to capitalize on market opportunities.

Revenue Growth Trend

Negative revenue growth trend poses risks to long-term business sustainability, potentially affecting investment in innovation and market expansion.

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 primarily through its auctioning services, where it earns commissions from the sale of goods and materials on its platform. The company facilitates transactions for a wide range of commodities, including iron, steel, and non-ferrous metals, which are auctioned to the highest bidders. Key revenue streams include transaction fees, service charges for e-commerce services, and commissions from buyers and sellers. Additionally, MSTC has formed strategic partnerships with various public and private sector organizations, enhancing its market reach and operational capabilities, which further contribute to its earnings. The diversification of its services, including logistics and warehousing, also plays a crucial role in bolstering its revenue model.

MSTC Ltd. Financial Statement Overview

Summary

MSTC Ltd. demonstrates strong profitability with a robust net profit margin and impressive EBITDA margin, indicating efficient cost management. However, the significant revenue decline poses a risk to future earnings stability. The balance sheet shows conservative leverage and strong return on equity, but asset reduction suggests potential challenges. Cash flow improvements enhance liquidity, though past volatility raises concerns about consistency.

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	3.19B	3.11B	3.16B	7.21B	8.76B	7.80B
Gross Profit	2.83B	3.01B	2.19B	3.01B	2.83B	5.51B
EBITDA	5.23B	2.60B	3.65B	3.54B	2.56B	1.63B
Net Income	4.25B	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	13.59B	14.11B	10.30B	9.21B	7.46B	7.46B
Total Debt	0.00	1.45B	1.45B	1.45B	1.50B	1.54B
Total Liabilities	-7.38B	13.80B	13.61B	19.04B	13.62B	16.90B
Stockholders Equity	7.38B	7.38B	8.89B	7.87B	6.54B	5.58B
Cash Flow
Free Cash Flow	0.00	2.36B	-4.44B	8.10B	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: Negative
• Last Price: 492.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 492.85 is below the 20-day moving average (MA) of 516.78, below the 50-day MA of 522.01, and below the 200-day MA of 512.42, indicating a bearish trend. The MACD of -10.65 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 31.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹47.42B	20.30	―	2.77%	4.74%	176.63%
BALMLAWRIE	68 Neutral	₹34.42B	12.70	―	4.59%	4.77%	-0.62%
MSTCLTD	64 Neutral	₹38.66B	9.09	―	9.13%	-48.50%	92.06%
ALLCARGO	62 Neutral	₹13.03B	―	―	16.24%	-15.70%	-343.97%
PSPPROJECT	62 Neutral	₹37.94B	135.00	―	―	-2.24%	-70.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%