1. At a Glance
A PSU that’s not a PSU in behavior — MSTC throws out ₹400 Cr+ in net profit while running e-auctions for governments and trading industrial scrap. It’s a dividend-popping, margin-rocking, quietly profitable gem… with a serious debtor problem.
2. Introduction with Hook
You know that shady kabadiwala in every Indian mohalla? Now imagine he went public, digitized, and got the GoI seal of approval.
That’s MSTC.
- FY25 Net Profit: ₹407 Cr
- Dividend Yield: 7.57%
- ROCE: 25.6%
It’s like someone took a rusted iron pipe and turned it into a golden tap of free cash flow.
3. Business Model (WTF Do They Even Do?)
MSTC has two powerful engines:
1. Trading Business (~37% of revenue)
- Buys/imports raw materials like scrap, coke, naphtha, coils
- Acts as facilitator → earns margin per transaction
- Works with steel, petrochemical industries
2. E-Commerce / Auction Business
- Go-to auction house for:
- Coal India
- State disinvestment auctions
- Govt machinery & vehicle disposal
- Forest/agro/mineral product bidding
- Recently expanded into
