Government-Owned Stock Jumps 8 Per Cent As Board Is Likely To Announce Dividend
The stock is down by 40 per cent in 1 year but shows a positive 3-year return of 65 per cent.
MSTC Limited, a government-owned enterprise, has scheduled a board meeting on 26th March 2025 to discuss the declaration of a third interim dividend for the financial year 2024-25. This decision comes amid the company's ongoing efforts in trading, e-commerce, and scrap recovery businesses. MSTC plays a crucial role in the procurement of raw materials for secondary steel producers and the petrochemical industry, sourcing materials like heavy melting scrap and coking coal. The company also engages in e-commerce services, facilitating e-auctions for various commodities and government assets.
MSTC's joint venture with Mahindra Intertrade Ltd focuses on auto-recycling, benefiting from India's vehicle scrapping policy. Despite the diverse business operations, MSTC faces challenges, including litigation related to the export of gold jewellery and significant credit-impaired trade receivables. As the board meeting approaches, investors are keenly observing how these factors might influence the company's dividend strategy. Today, the stock price of MSTC Limited jumped 8 per cent to Rs 518.30 per share. The stock’s 52-week low is Rs 410.80, with the 52-week high recorded at Rs 1,037.
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MSTC Limited, a government-owned entity, operates in trading, e-commerce, and scrap recovery. It facilitates raw material procurement for industries, and its joint venture with Mahindra Intertrade Ltd focuses on auto-recycling. The company is a significant e-commerce service provider, conducting e-auctions for various commodities and government assets. In FY22, the scrap recovery business generated substantial revenue, while the e-commerce segment continues to expand, targeting private sector opportunities. MSTC's strategic priorities include leveraging India's vehicle scrapping policy and enhancing its e-commerce footprint. However, challenges such as litigation and credit-impaired trade receivables persist, impacting its financial landscape.
MSTC Limited has a market capitalization of over Rs 3,500 crore. The stock is down by 40 per cent in 1 year but shows a positive 3-year return of 65 per cent. The company's price-earnings (PE) ratio is 20.
Disclaimer: The article is for informational purposes only and not investment advice.