MSTC Limited, a Mini Ratna Category-I Public Sector Undertaking (PSU) under the Ministry of Steel, is recognized for its extensive e-commerce services. Established as a leader in e-commerce for industries since 2002, MSTC provides solutions like e-auctions, e-sales, e-procurement, and e-tendering, along with specialized software solutions for various sectors.
The company recently announced an interim dividend of ₹4 per share (40% of the face value of ₹10) for FY 2024-25. Shareholders eligible for this dividend will be those holding shares as of the record date, November 22, 2024. The dividend is scheduled for distribution within 30 days from its declaration date.
Financially, MSTC posted a slight profit increase in Q2 FY25, with net profit rising by 1.90% year-over-year to ₹56.39 crore, compared to ₹55.34 crore in the same quarter the previous year. However, revenue saw an 11.35% decline, dropping from ₹81.13 crore in Q2 FY24 to ₹71.92 crore in Q2 FY25. The EBITDA also fell significantly by 27.96%, from ₹85.65 crore to ₹61.70 crore over the same period.
In terms of stock performance, analyst Mandar Bhojane from Choice Broking noted that MSTC’s stock, currently around ₹607, is trending downward within a descending price channel. If the stock breaks above ₹680, it could signal a reversal with potential targets of ₹750 and ₹800. Key support levels are identified at ₹600 and ₹570, which may present buying opportunities. The Relative Strength Index (RSI) is at 35, reflecting ongoing selling pressure, and the stock trades below its 50-day and 200-day Exponential Moving Averages, reinforcing the downtrend outlook.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a financial advisor before making investment decisions. Stock market investments carry risk.
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