Risk factor
Meaningful price volatility
Profitability factor
Very strong margins and returns
About
MSTC Limited, an Indian company established in 1964 and based in Kolkata, operates primarily in marketing, electronic commerce, and the recovery and associated services for scrap materials. The company's operations are divided into two main divisions: Marketing and E-Commerce. Within its e-commerce segment, MSTC facilitates various online business processes, including electronic procurement, auctions, tendering, sales, and recycling initiatives. Beyond its e-commerce platforms, it also develops enterprise resource planning (ERP) software. Furthermore, MSTC is involved in the trade of industrial raw materials and specialized project equipment. It also manages the disposal of a wide array of items, such as ferrous and non-ferrous metals, excess inventory, machinery, spare parts, vehicles, minerals, agricultural goods, and forestry products.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, overvalued on EV/EBITD.