MSTC Ltd. (MSTCLTD) AI Stock Analysis

• Market Cap: ₹33.06B
• Dividend Yield: 9.51%
• Average Volume (3M): 12.09K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 2.19
• Revenue Growth: -42.54%
• EPS Growth: 117.59%
• Country: IN
• Employees: 290
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 10.73
• Shares Outstanding: 70,400,000
• 10 Day Avg. Volume: 11,759
• 30 Day Avg. Volume: 12,093
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹517.00
• Price Target Upside: 11.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹517.00 ▲(11.24% Upside)

MSTC Ltd.'s stock score is primarily driven by strong financial performance, characterized by high profitability and effective leverage management. However, the significant revenue decline presents a risk to growth stability. Technical indicators currently suggest bearish momentum, weighing negatively on the score. The valuation is attractive, with a low P/E ratio and a high dividend yield, providing a strong investment proposition.

MSTC Ltd. Business Overview & Revenue Model

Company Description

MSTC Ltd. is an Indian state-owned company under the purview of the Ministry of Steel, primarily engaged in the business of providing e-commerce services, trading, and recycling. The company is known for its e-commerce platform that facilitates the sale of goods and services, including the auctioning of ferrous and non-ferrous scrap, surplus stores, minerals, and more. MSTC also plays a significant role in the recycling sector, focusing on e-waste and other forms of waste management.

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 with a net profit margin of 130.91% and an impressive EBITDA margin of 166.35%. However, a 58.6% decline in total revenue poses a risk, despite a healthy balance sheet with a low debt-to-equity ratio and strong return on equity.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.42B	3.11B	7.51B	7.21B	4.27B	3.82B
Gross Profit	4.23B	3.11B	6.88B	6.40B	1.98B	1.52B
EBITDA	6.01B	5.17B	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: Negative
• Last Price: 464.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 464.75 is below the 20-day moving average (MA) of 496.92, below the 50-day MA of 519.39, and below the 200-day MA of 552.70, indicating a bearish trend. The MACD of -15.87 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 18.20 is Positive, 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	71 Outperform	₹49.08B	22.36		3.59%	8.04%	221.22%
BALMLAWRIE	67 Neutral	₹36.48B	13.46		3.99%	7.25%	1.09%
MSTCLTD	67 Neutral	₹33.06B	8.12		9.51%	-42.54%	117.59%
Sector *	60 Neutral	€4.92B	31.91	-10.66%	5.32%	6.31%	-42.84%
ALLCARGO	60 Neutral	₹35.07B	99.11		6.16%	17.82%	-311.97%
PSPPROJECT	57 Neutral	₹26.05B	117.36		0.40%	-7.97%	-82.72%