Fundamental Analysis

MSTC LTD 

Ticker : 542597
BUY : Rs 210.55
Target : Rs 235

MSTC Ltd is an India-based company, which is engaged in providing e-commerce related services. It also offers e-auction platform to government departments and government-controlled entities. Considering their quarterly performance, on a consolidated quarterly front, its net sales de-grew by 21.59 per cent for the quarter ended September 2020 to Rs 209.45 crore from Rs 267.14 crore reported in the same period of the previous fiscal year. The company reported an operating profit of Rs 51.86 crore in Q2FY21, down by 10.38 per cent as compared to Rs 57.87 in Q2FY20. Its net profit declined by 2.72 per cent and was Rs 29.23 crore in Q2FY21 as compared to the net profit of Rs 30.04 crore recorded in Q2FY20. MSTC, having a foray into new & diverse business verticals, including the flagship projects of the Government of India, has a multifold growing potential in this arena. It is also striving to harness the untapped potential in the private sector along with playing a pivotal role in the recycling sector. Hence, we recommend to BUY.