President of India’s portfolio gains Rs 350,06,05,440 from this multibagger small-cap stock in just 1 day; stock trades at high ROE & high ROCE!

The stock gave multibagger returns of 130 per cent in just 1 year and over 300 per cent in 3 years.

The domestic benchmark indices ended the day in green. BSE Sensex Index gained 0.32 per cent at a level of 71,337 and NSE Nifty-50 Index surged 0.43 per cent at a level of 21,441. About 2,292 shares have advanced, 1,599 declined, and 139 are unchanged on the BSE. 

With the market in green, one multibagger Small-Cap stock was trading in green. The stock jumped 18.17 per cent to an intraday high & 52-week high of Rs 670.65 per share from its previous closing of Rs 567.55. At the closing bell, shares of the company were trading at Rs 644.80 per share, up 13.52 per cent with a spurt in volume by more than 2.77 times on BSE.

The stock name is MSTC LTD.

MSTC Ltd is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel, Government of India. It is a leading e-commerce company in India, offering a wide range of services such as e-auction/e-sale, e-procurement, and development of customized software/solutions.

The President of India owns 4,55,80,800 shares or 64.75 per cent stake in the company. As of today’s closing, the stock is up by 76.80 points.

Therefore, the President of India’s portfolio gains: 4,55,80,800 shares x 76.80 per share = Rs 350,06,05,440 in just 1 day.

Financials about the company

MSTC Ltd., a small-cap company with a Rs 4,600 crore market cap, boasts a strong 5-year profit growth track record of 25.6 per cent CAGR. However, recent financials paint a mixed picture. While Quarterly Results show a 7.32 per cent increase in net sales to Rs 187.8 crore, net profit dipped 10.54 per cent to Rs 57.5 crore compared to the same period last year. Similarly, half-yearly results reveal a 3.16 per cent rise in net sales to Rs 366.8 crore, but a 7.76 per cent decline in net profit to Rs 109.3 crore year-on-year. On an annual basis, FY23 compared to FY22 witnessed a 17.71 per cent drop in net sales to Rs 721 crore, but a positive 23.04 per cent increase in net profit to Rs 244.6 crore.

The has been maintaining a healthy dividend payout of 38.9 per cent. The shares of the company have an ROE of 33.6 per cent and an ROCE of 37.9 per cent. The stock gave multibagger returns of 130 per cent in just 1 year and over 300 per cent in 3 years.

Overall, MSTC Ltd is a leading e-commerce company in India that plays a vital role in the Indian economy. Do you own MSTC Ltd.’s stock in your portfolio? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.