State Trading Corporation of India Limited (STCINDIA) AI Stock Analysis

• Market Cap: ₹7.25B
• Dividend Yield: N/A
• Average Volume (3M): 3.26K
• Price to Earnings (P/E): 102.0
• Beta (1Y): 1.95
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 126
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 1,724
• 30 Day Avg. Volume: 3,261
• PEG Ratio: -0.63
• Price to Book (P/B): -0.14
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹113.00 ▼(-9.82% Downside)

The score is held down primarily by weak financial performance—negative equity, persistent operating losses, and poor operating cash flow—signaling high financial risk. Technicals are comparatively supportive with the price trading above major moving averages and moderately positive momentum, but valuation is unfavorable due to the very high P/E and lack of dividend support.

Positive Factors

Government ownership / strategic backing

State ownership provides durable strategic advantages: preferential access to government tenders, stronger standing with counterparties and regulators, and potential implicit support for refinancing. This structural backing can sustain operations and deal flow over the medium term.

Participation in large tenders and long-term contracts

Regular participation in large tenders and long-term supply contracts creates structural revenue opportunities and scale advantages. Contracted flows reduce transactional volatility, support predictable fee/margin income, and anchor customer relationships over multiple quarters.

Integrated trade services and logistics capabilities

Owning end-to-end trade capabilities (procurement, logistics, marketing, trade finance) builds a durable competitive position by capturing multiple service margins, creating sticky counterparty relationships, and enabling operational resilience across trade cycles.

Negative Factors

Deeply negative shareholders' equity

Persistently negative equity reflects accumulated losses and capital erosion, severely weakening solvency and creditor confidence. Over months this restricts borrowing capacity, raises likelihood of covenant breaches or forced recapitalization, and undermines long-term financial stability.

Large outstanding debt burden

Substantial debt with negative equity materially increases leverage and refinancing risk. Interest and principal service needs constrain liquidity, reduce flexibility to fund working capital or bid for contracts, and heighten exposure to rising rates or tightened credit markets.

Weak operating performance and cash conversion

Near-zero or unstable revenue, recurring negative EBIT and mostly negative operating cash flow signal poor earnings quality and inability to self-fund operations. Reliance on external financing and volatile cash conversion threatens continuity and limits capacity to invest or scale sustainably.

State Trading Corporation of India Limited Business Overview & Revenue Model

Company Description

The State Trading Corporation of India Ltd. engages in the trading business worldwide. The company exports and imports various products, including rice, wheat, sugar, pulses, edible oils, fertilizers, coals, bullion, etc. It also offers hydrocarbons, metals, minerals, ores, and petro-chemicals products. The State Trading Corporation of India Ltd. was incorporated in 1956 and is based in New Delhi, India.

How the Company Makes Money

State Trading Corporation of India Limited Financial Statement Overview

Summary

Financials look highly stressed: near-zero/unstable revenue, negative EBIT across the periods shown, weak cash conversion with mostly negative operating cash flow, and deeply negative shareholders’ equity alongside large debt—indicating elevated solvency and funding risk despite recent positive net income.

Income Statement

Reported revenue is essentially zero in most recent years (including a -100% revenue growth rate in FY2025), which makes profitability signals hard to rely on and suggests major operating disruption or reporting anomalies. Despite positive net income in FY2023–FY2025, the core operating line remains weak with negative EBIT every year shown, indicating profits are not being generated from ongoing operations. Overall, earnings quality looks low and business momentum appears unstable.

Balance Sheet

The balance sheet is highly stressed: shareholders’ equity is deeply negative across all periods, which is a major red flag for solvency and financial flexibility. Debt remains large (~19.8B) while equity stays negative, limiting borrowing capacity and increasing refinancing risk. Total assets are relatively stable, but the persistent negative equity position dominates the credit and durability outlook.

Cash Flow

Cash generation is inconsistent and mostly weak: operating cash flow is negative in most years (and significantly negative in FY2025), implying the business is not self-funding day-to-day operations. Free cash flow is also negative in several years, with only brief periods of positivity, increasing reliance on external funding or working-capital swings. Even with positive net income in recent years, cash conversion appears poor.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	2.47B
Gross Profit	0.00	0.00	-3.29M	-3.04M	-37.20M	9.32M
EBITDA	499.01M	499.01M	532.51M	92.46M	399.67M	-371.20M
Net Income	247.45M	247.45M	510.72M	317.88M	-868.49M	-504.47M
Balance Sheet
Total Assets	23.61B	23.61B	23.93B	23.47B	23.07B	23.61B
Cash, Cash Equivalents and Short-Term Investments	405.29M	405.29M	2.88B	2.22B	2.04B	1.92B
Total Debt	19.81B	19.81B	19.81B	19.87B	19.87B	19.87B
Total Liabilities	69.64B	69.64B	70.26B	70.50B	70.62B	70.34B
Stockholders Equity	-46.03B	-46.03B	-46.33B	-47.02B	-47.55B	-46.73B
Cash Flow
Free Cash Flow	0.00	0.00	-221.20M	-616.39M	47.40M	-1.96B
Operating Cash Flow	0.00	-1.54B	-221.20M	-616.39M	47.40M	-1.94B
Investing Cash Flow	0.00	1.06B	946.35M	814.33M	74.18M	1.43B
Financing Cash Flow	0.00	0.00	0.00	0.00	0.00	-20.79M

State Trading Corporation of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHRADHA	63 Neutral	₹3.22B	11.24	―	1.09%	10.83%	-3.84%
ROHLTD	61 Neutral	₹9.84B	21.32	―	0.61%	10.77%	-4.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
STCINDIA	48 Neutral	₹7.25B	101.96	―	―	―	―
HEXATRADEX	46 Neutral	₹8.75B	40.81	―	―	-88.39%	―
SBGLP	46 Neutral	₹6.06B	29.98	―	0.27%	37.56%	77.10%
NDTV	45 Neutral	₹9.23B	-2.16	―	―	19.53%	-138.48%

State Trading Corporation of India Limited Corporate Events

State Trading Corporation of India Inducts New Government Nominee Director

The State Trading Corporation of India Limited has announced a change in its board composition, following an order from the Department of Commerce, Ministry of Commerce and Industry. The government has appointed Asit Gopal, Special Secretary and Financial Advisor in the Ministry of Textiles, who also holds additional charge as Additional Secretary and Financial Advisor in the Department of Commerce, as a Government Nominee Director on STC’s board with immediate effect, subject to completion of requisite formalities. This board-level change underscores the continued direct oversight and involvement of senior government officials in the governance of the state-owned trading company, which may influence its strategic decisions, financial oversight, and alignment with broader trade and commerce policy objectives.

State Trading Corporation of India Inducts New Government Nominee Director to Its Board

The State Trading Corporation of India Limited has announced a change in its board, with the appointment of Shri A K M Kashyap as an Additional Director in the capacity of Government Nominee Director, effective 15 December 2025, following approval by the existing directors through circulation on 24 December 2025. Nominated by the Ministry of Commerce and Industry, Kashyap brings extensive experience in quality assurance and commerce-related functions, and the company has confirmed he is not related to any existing directors and is not debarred from holding a directorship, underscoring regulatory compliance and reinforcing government oversight and continuity in STC’s governance structure.

State Trading Corporation of India Schedules Virtual 69th AGM on January 15, 2026

The State Trading Corporation of India Limited has notified stock exchanges that its 69th Annual General Meeting will be held on January 15, 2026, at 3:30 p.m. via video conferencing/other audio-visual means, with no physical venue, in line with Ministry of Corporate Affairs and SEBI circulars permitting virtual shareholder meetings. The company will distribute the AGM notice and annual report for the year ended March 31, 2025 exclusively by email to shareholders with registered addresses, enable participation and quorum through the VC/OAVM platform, and provide remote e-voting prior to the meeting as well as e-voting during the AGM through CDSL, while urging shareholders who have not done so to register their email IDs with the registrar or the company to ensure access to the meeting and voting arrangements.

State Trading Corporation of India Fined for Regulatory Non-Compliance

The State Trading Corporation of India Limited has been fined by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for failing to submit financial results for the quarter ending September 30, 2025. This non-compliance with SEBI regulations resulted in fines totaling INR 1,77,000 from each exchange, potentially impacting the company’s regulatory standing and stakeholder confidence.

State Trading Corporation of India Faces Regulatory Fine for Board Non-Compliance

The State Trading Corporation of India Limited has been fined by the National Stock Exchange of India Limited for non-compliance with several provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The fine, amounting to approximately 12 lakh INR, was imposed due to the company’s failure to have the requisite number of independent directors on its board for the quarter ending September 30, 2025. This non-compliance could impact the company’s governance standards and its standing with regulatory bodies.

STC India Faces Regulatory Fine for Board Non-Compliance

The State Trading Corporation of India Limited has been fined by BSE Limited for non-compliance with several provisions of the SEBI (LODR) Regulations, 2015, due to an insufficient number of independent directors on its board for the quarter ending September 30, 2025. The fine amounts to ₹12,05,960, including GST, highlighting governance challenges that could impact stakeholder confidence and regulatory compliance standing.

State Trading Corporation of India Appoints New Government Nominee Director

The State Trading Corporation of India Limited announced a change in its board of directors, with the appointment of Shri A K M Kashyap as a Government Nominee Director. This change is expected to impact the company’s governance structure, aligning it more closely with government directives and potentially influencing its strategic direction.