Fundamental Analysis

MSTC LTD. 

{Ticker : 542597 { BUY: Rs.148.05 { Target: Rs.170



MSTC is an e-commerce company offering e-auction, e-procurement services and development of customised software solutions. On a consolidated quarterly front, net sales reported for Q2FY20 was Rs 279.27 crore, down by 67.19 per cent from Rs 851.22 crore in Q2FY19. On account of a decline in provisions, the company reported an operating profit of Rs 45.23 crore in Q2FY20, as against an operating loss of Rs 403.06 crore in Q2FY19. The company gained a net profit of Rs 29.32 crore in Q2FY20, as against a net loss of Rs 434.78 crore incurred in Q2FY19. MSTC has recently entered into agreements with companies such as Tega Industries, Security Printing & Minting Corporation of India and Engineers India Limited for the provision of its various services. Thus, the company’s growth prospects look positive. Hence, we recommend a BUY.