Khelo Kushti aur Karo Masti with MSTC.- Stock is providing a good dividend yield of 3.51%.
- Company has delivered good profit growth of 26% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 30%
- Company has been maintaining a healthy dividend payout of 39%
- Promoter holding 65 %
- Annual Net Profit rose 21.5% in the last year to Rs 242 Crores. Its sector's average net profit growth for the last fiscal year was 49.2%.
- PE Ratio is 12 vs its sector PE Ratio of 85.
MSTC (Metal Scrap Trade Corporation) Ltd undertakes trading activities, e-commerce and also disposal of ferrous and non-ferrous scrap, surplus stores, minerals, agri and forest products, etc. The company is owned and controlled by the Government of India. The company is significantly important for GOI as it undertakes various important e-auctions for the government.
It sources raw materials like heavy melting scrap, low ash metallurgical coke, HR coil, Naptha, crude oil, coking coal, etc
The company's branches are located across India in cities like New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Lucknow, Jaipur, Raipur, Guwahati, Chandigarh, and others
It is casting more focus on untapped e-comm business from the private sector and has signed ticket agreements with Reliance, Indus Towers, Tata Power, Vedanta, and others.
Mahindra MSTC Recycling Pvt Ltd is a JV with Mahindra Intertrade Ltd wherein the company holds 50% stake. It owns India’s first auto-recycling plant in Greater Noida, Uttar Pradesh for the scientific recycling of End of Life Vehicles (ELVs) and white goods. It has further operationalized Collection & Dismantling centers at Chennai and Pune in FY22.
The JV can greatly benefit from the vehicle scrapping policy which can ensure continuous supply of ELVs for its plants.
