1. At a Glance
Once India’s gold-import king, MMTC now does ₹3 Cr in sales and trades at a ₹10,000 Cr market cap. Suspicious? Very.
2. Introduction with Hook
Imagine Sachin Tendulkar showing up to bat… and then scoring 2 runs in 20 overs. That’s MMTC. Once India’s pride in trade, now it’s barely breathing commercially.
- FY14 Sales: ₹28,000 Cr → FY25: ₹3 Cr (yes, three)
- P/E: 105 with sales vanishing faster than crypto credibility
Yet the stock still commands cult-like attention. Why?
3. Business Model (WTF Do They Even Do?)
MMTC is a PSU under the Ministry of Commerce. It’s historically been:
- A canalizing agency for gold, silver, coal, fertilizers
- A key importer-exporter for:
- Agro (rice, sugar, wheat)
- Fertilizers (~4 Mn tonnes annually)
- Precious Metals (authorised gold import agent)
- Metals & Ores (chrome, iron, copper)
Today: Operations? Hello? Anyone home?
4. Financials Overview
Let’s summarize the horror story:
| Metric | FY14 | FY25 |
|---|---|---|
| Revenue | ₹28,142 Cr | ₹3 Cr |
| Operating Profit | ₹141 Cr | -₹139 Cr |
| Net Profit | -₹18 Cr | ₹87 Cr |
| Other Income | ₹31 Cr | ₹263 Cr |
| EPS | -₹0.12 | ₹0.58 |
| OPM | 0.5% | -5155% |
Takeaway: MMTC earns more from its FD interest than trade.
5. Valuation
Let’s not even pretend the P/E of 105 is defensible via DCF. So here’s a sanity check:
- Book Value: ₹11.4 → CMP ₹68.1 = 6x Book
- EV/EBITDA: Undefined (EBITDA is negative)
- Fair Value Range (Speculative Discounting):
₹15–₹25 if fundamentals priced.
₹70–₹100 if market continues to price hope and PSU divestment dreams.
6. What’s Cooking – News, Triggers, Drama
- Divestment buzz: Every PSU stock is getting love. MMTC is riding the wave.
- Gold trade revival hopes: MMTC used to be India’s largest gold importer.
- Speculation: Massive retail participation. Meme stock vibes.
- Leadership changes: CFO + Dir (Finance) changed recently → cleanup?
- SEBI Radar? Nothing public, but the 16,000+ debtor days raise eyebrows.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹150 Cr |
| Reserves | ₹1,552 Cr |
| Borrowings | ₹0 Cr |
| Total Assets | ₹3,478 Cr |
| Fixed Assets | ₹24 Cr |
| Investments | ₹328 Cr |
| Other Assets | ₹3,126 Cr |
Key Takeaways:
- Zero debt
- Most assets are non-operating
- Net worth exists — thanks to other income, not business
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹754 Cr | ₹1,959 Cr | -₹2,547 Cr | ₹166 Cr |
| FY24 | -₹353 Cr | ₹198 Cr | -₹43 Cr | -₹198 Cr |
| FY25 | -₹363 Cr | ₹278 Cr | -₹5 Cr | -₹90 Cr |
Cash flow from ops = consistently negative
This is a stock with income but no income generation
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 8% |
| ROE | 5.86% |
| Debtor Days | 16,152 |
| Inventory Days | 164 |
| OPM | -5155% |
| Dividend Yield | 0.00% |
Debtor Days = 44 years
Either MMTC lends to ghosts or runs a free sample program.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM | PAT | Other Income | EPS |
|---|---|---|---|---|---|
| FY22 | ₹11,795 Cr | 4% | -₹262 Cr | -₹126 Cr | -₹1.75 |
| FY23 | ₹3,527 Cr | -3% | ₹1,562 Cr | ₹2,000 Cr | ₹10.42 |
| FY24 | ₹3 Cr | -4800% | ₹192 Cr | ₹368 Cr | ₹1.28 |
| FY25 | ₹3 Cr | -5155% | ₹87 Cr | ₹263 Cr | ₹0.58 |
Other Income drives the bus. The engine (operations) is missing.
11. Peer Comparison
| Company | Sales Qtr | PAT Qtr | ROCE | P/E |
|---|---|---|---|---|
| Redington | ₹26,440 Cr | ₹918 Cr | 18.9% | 20.8 |
| MSTC | ₹89 Cr | ₹75 Cr | 25.5% | 19.1 |
| MMTC | ₹0.23 Cr | ₹2.2 Cr | 7.7% | 105 |
MMTC has market cap but not business. Valuation built on nostalgia, not narrative.
12. Miscellaneous – Shareholding, Promoters
| Category | Holding (Jun 2025) |
|---|---|
| Promoters | 89.93% |
| FIIs | 0.11% |
| DIIs | 1.87% |
| Public | 8.09% |
| No. of SHs | ~4 lakh |
- Massive promoter control = 90%
- Retail holding increasing = speculative buying
13. EduInvesting Verdict™
MMTC isn’t running a business — it’s managing legacy assets.
Its profits are like movie royalties: past work, current cash.
The market isn’t valuing its trade. It’s valuing its PSU tag, zero debt, and hope.
Is this stock the next multibagger? Maybe.
Is it a business you’d want to own based on fundamentals? Not today.
So either you trust the government will divest it, or you acknowledge you’re holding a ticket to the “PSU fantasy express.”
Metadata
- Written by: EduInvesting Research Team | Date: 20 July 2025
- Tags: MMTC, PSU, Gold Import, Divestment, Stock Analysis, Meme Stocks, Government of India
