Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

MSTC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:35 pm

Market Cap 4,102 Cr.
Current Price 583
High / Low1,165/417
Stock P/E22.6
Book Value 138
Dividend Yield2.66 %
ROCE34.6 %
ROE24.4 %
Face Value 10.0
PEG Ratio1.18

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for MSTC Ltd

Competitors of MSTC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IFL Enterprises Ltd 75.0 Cr. 1.003.87/0.95 0.990.00 %5.06 %3.36 % 1.00
Hira Automobile Ltd 19.6 Cr. 71.271.2/26.128.4 51.40.00 %9.65 %5.10 % 10.0
Hindustan Appliances Ltd 344 Cr. 343343/9.832,022 14.50.00 %0.26 %0.90 % 10.0
Hardwyn India Ltd 1,256 Cr. 36.052.0/26.0101 11.10.00 %3.92 %2.58 % 1.00
Grandma Trading & Agencies Ltd 11.8 Cr. 0.903.59/0.80 0.010.00 %0.64 %1.30 % 1.00
Industry Average5,268.76N/A117.42N/AN/A12.238.59N/A

All Competitor Stocks of MSTC Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales209158311264228189196181175169197179188
Expenses162128446209182124353109190114116114128
Operating Profit4830-135554665-15772-1555816560
OPM %23%19%-43%21%20%34%-80%40%-8%32%41%36%32%
Other Income47201569228149414362123
Interest2212100000000
Depreciation5545556555655
Profit before tax453060544668658174641118178
Tax %36%63%-26%38%38%39%-47%33%14%26%31%37%29%
Net Profit29117634284196546447775155
EPS in Rs4.091.5810.774.774.025.8713.637.719.046.6810.937.197.86

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,4545,6893,2251,7392,2653,2921,231780876721748
Expenses5,2765,5253,3861,6032,5783,4981,083831867528480
Operating Profit178164-161136-313-206148-519193268
OPM %3%3%-5%8%-14%-6%12%-7%1%27%36%
Other Income-11490831375284865214247158100
Interest14593104788565308300
Depreciation158121212151719212224
Profit before tax-95152-194183117-237167136233329344
Tax %35%32%-27%24%34%-29%42%17%15%26%
Net Profit-62103-24713977-30797113199242233
EPS in Rs-70.48117.51-280.8079.0621.94-43.6213.7816.0528.2834.3733.08
Dividend Payout %0%18%-7%25%34%-17%0%27%46%44%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)266.13%-339.81%156.28%-44.60%-498.70%131.60%16.49%76.11%21.61%
Change in YoY Net Profit Growth (%)0.00%-605.93%496.08%-200.88%-454.10%630.30%-115.10%59.61%-54.50%

MSTC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2014-2015 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-18%
5 Years:-26%
3 Years:-1%
TTM:-16%
Compounded Profit Growth
10 Years:9%
5 Years:22%
3 Years:22%
TTM:-18%
Stock Price CAGR
10 Years:%
5 Years:30%
3 Years:18%
1 Year:30%
Return on Equity
10 Years:10%
5 Years:27%
3 Years:30%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:36 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital999183570707070707070
Reserves749829306388696318404488584716819901
Borrowings8731,106653688766615259154150145145145
Other Liabilities3,8114,0823,1943,5053,6071,8261,4691,5361,2111,7581,2161,160
Total Liabilities5,4416,0264,1624,6005,1042,8292,2012,2492,0152,6902,2502,276
Fixed Assets687362666983968914214115065
CWIP2242102329520000
Investments0003914111421191215
Other Assets5,3715,9514,0964,5295,0152,7082,0652,0931,8532,5292,0872,197
Total Assets5,4416,0264,1624,6005,1042,8292,2012,2492,0152,6902,2502,276

Reserves and Borrowings Chart

No data available for this post.

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-695.00163.00-814.00-552.00-1,079.00-821.00-111.00-205.00-141.0048.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days257266292726642207434416228235252
Inventory Days31132211410123536
Days Payable236213291761598134388722356903968
Cash Conversion Cycle24643-13457450-295-116-634-679
Working Capital Days1624-5039882138-234-187-525-249
ROCE %14%-6%25%16%-14%23%20%31%38%35%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.75%64.75%64.75%64.75%64.75%64.75%64.75%64.75%64.75%64.75%64.75%64.75%
FIIs0.17%0.30%0.34%0.31%0.31%0.35%0.47%1.09%3.59%3.33%5.64%5.76%
DIIs2.50%2.23%2.36%2.17%1.72%1.54%1.41%1.36%1.43%1.35%1.19%1.94%
Public32.58%32.72%32.56%32.78%33.22%33.35%33.37%32.81%30.24%30.58%28.41%27.55%
No. of Shareholders47,37561,39362,88763,40463,45962,50262,33756,22449,41156,75369,53468,971

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Taurus Flexi Cap Fund62,1230.892.64712024-11-1287397.18%
Motilal Oswal Nifty Microcap 250 Index Fund27,2730.21.16712024-11-1238312.68%
Groww Nifty Total Market Index Fund710.010712024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)29.0334.3728.2916.0513.78
Diluted EPS (Rs.)29.0334.3728.2916.0513.78
Cash EPS (Rs.)33.4437.8531.2018.8216.52
Book Value[Excl.RevalReserv]/Share (Rs.)126.28111.7292.9179.2567.32
Book Value[Incl.RevalReserv]/Share (Rs.)126.28111.7292.9179.2567.32
Revenue From Operations / Share (Rs.)106.65102.41124.45110.86174.91
PBDIT / Share (Rs.)52.7850.2536.3723.0930.51
PBIT / Share (Rs.)49.3547.1533.4220.4428.15
PBT / Share (Rs.)49.3047.1333.0519.4224.07
Net Profit / Share (Rs.)30.0034.7428.2516.1714.16
NP After MI And SOA / Share (Rs.)29.0334.3728.2916.0513.78
PBDIT Margin (%)49.4949.0629.2220.8217.44
PBIT Margin (%)46.2746.0326.8518.4316.09
PBT Margin (%)46.2246.0226.5517.5213.75
Net Profit Margin (%)28.1333.9222.6914.588.09
NP After MI And SOA Margin (%)27.2133.5622.7214.477.87
Return on Networth / Equity (%)22.9830.7630.4420.2420.47
Return on Capital Employeed (%)34.8137.2130.6821.7334.93
Return On Assets (%)9.088.999.895.024.40
Long Term Debt / Equity (X)0.000.000.000.010.01
Total Debt / Equity (X)0.160.180.220.270.54
Asset Turnover Ratio (%)0.300.300.410.210.36
Current Ratio (X)1.391.241.181.071.06
Quick Ratio (X)1.391.241.171.071.06
Dividend Payout Ratio (NP) (%)0.0047.1330.0520.561.28
Dividend Payout Ratio (CP) (%)0.0043.2327.2117.641.09
Earning Retention Ratio (%)0.0052.8769.9579.4498.72
Cash Earning Retention Ratio (%)0.0056.7772.7982.3698.91
Interest Coverage Ratio (X)901.973870.4597.8822.757.48
Interest Coverage Ratio (Post Tax) (X)513.712677.2777.0116.934.47
Enterprise Value (Cr.)4848.00324.591484.681495.77581.62
EV / Net Operating Revenue (X)6.460.451.691.920.47
EV / EBITDA (X)13.050.915.809.202.71
MarketCap / Net Operating Revenue (X)7.792.472.462.690.45
Retention Ratios (%)0.0052.8669.9479.4398.71
Price / BV (X)6.582.263.303.771.17
Price / Net Operating Revenue (X)7.792.472.462.690.45
EarningsYield0.030.130.090.050.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of MSTC Ltd as of November 17, 2024 is: 781.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, MSTC Ltd is Undervalued by 34.00% compared to the current share price 583.00

Intrinsic Value of MSTC Ltd as of November 17, 2024 is: 930.77

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, MSTC Ltd is Undervalued by 59.65% compared to the current share price 583.00

Last 5 Year EPS CAGR: 19.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.55%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -92.64, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -134.27, which is a positive sign.
  4. The company has higher reserves (599.83 cr) compared to borrowings (474.92 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (285.91 cr) and profit (103.18 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in MSTC Ltd:
      1. Net Profit Margin: 28.13%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 34.81% (Industry Average ROCE: 12.23%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 22.98% (Industry Average ROE: 8.59%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 513.71
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.39
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 22.6 (Industry average Stock P/E: 117.42)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.16
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    MSTC Ltd. is a Public Limited Listed company incorporated on 09/09/1964 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27320WB1964GOI026211 and registration number is 026211. Currently company belongs to the Industry of Trading. Company’s Total Operating Revenue is Rs. 470.64 Cr. and Equity Capital is Rs. 70.40 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Trading & DistributorsPlot No. CF-18/2, Street no 175, Kolkata West Bengal 700156mstcindia@mstcindia.in
    https://www.mstcindia.co.in
    Management
    NamePosition Held
    Mr. Manobendra GhoshalChairman & Managing Director
    Mr. Subrata SarkarDirector - Finance & CFO
    Ms. Bhanu KumarDirector - Commercial
    Dr. Vasant Ashok PatilIndependent Director
    Mr. Adya Prasad PandeyIndependent Director
    Mrs. Ruchika Chaudhry GovilGovernment Nominee Director
    Mr. Ashwini KumarGovernment Nominee Director

    FAQ

    What is the latest intrinsic value of MSTC Ltd?

    The latest intrinsic value of MSTC Ltd as on 17 November 2024 is ₹781.23, which is 34.00% higher than the current market price of ₹583.00.

    What is the Market Cap of MSTC Ltd?

    The Market Cap of MSTC Ltd is 4,102 Cr..

    What is the current Stock Price of MSTC Ltd as on 17 November 2024?

    The current stock price of MSTC Ltd as on 17 November 2024 is ₹583.

    What is the High / Low of MSTC Ltd stocks in FY 2024?

    In FY 2024, the High / Low of MSTC Ltd stocks is 1,165/417.

    What is the Stock P/E of MSTC Ltd?

    The Stock P/E of MSTC Ltd is 22.6.

    What is the Book Value of MSTC Ltd?

    The Book Value of MSTC Ltd is 138.

    What is the Dividend Yield of MSTC Ltd?

    The Dividend Yield of MSTC Ltd is 2.66 %.

    What is the ROCE of MSTC Ltd?

    The ROCE of MSTC Ltd is 34.6 %.

    What is the ROE of MSTC Ltd?

    The ROE of MSTC Ltd is 24.4 %.

    What is the Face Value of MSTC Ltd?

    The Face Value of MSTC Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in MSTC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE