MSTC was incorporated in 1964 as a trading company to deal in the export of
scrap and since than it has grown into a large diversified, multi-product services
and trading company. It was a canalizing agency for import of ferrous scrap until
1992, however after de-canalization, MSTC has established itself as one of the
leading e-commerce service providers in the country. MSTC is one of the major
players in trading of bulk raw material. It has entered the recycling business
through a 50:50 joint venture with MIL for setting up a shredding plant and
collection centres across the country. The company has three main business
verticals viz., (i) E-commerce, (ii) Trading, and (iii) Recycling through MMRPL.

Outlook & Valuation: Considering the company’s business segments like Ecommerce,
Trading & Recycling through MMRP, which mainly cater to the
commodity sectors (not very attractive). Moreover, given the instability on the topline
front coupled with losses on bottom-line front, we recommend NEUTRAL rating
on the issue.

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