52-week high alert: Heavy buying was witnessed in this PSU stock which gained about 100% in a year

Shares of MSTC Limited gained about 13% today. The stock has witnessed heavy buying activity from investors. The company recently completed the sale of Barytes, conducted e-auctions of Bluestone and Coal linkage, and auctioned 36 Sand Groups in Madhya Pradesh. Additionally, the company sees potential in the vehicle scrappage policy and other recycling, forming a JV with Mahindra to capitalize on it.

The shares of MSTC Limited have also delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price surged from Rs 285.90 on December 26, 2022, to Rs 643.45 on December 26, 2023, representing an increase of about 100% in a one-year holding period. An investment of Rs 1 lakh in this company’s shares three years ago would have grown to Rs 2 lakh today.

Financial Performance

In Q2FY24, the company posted 7.32% growth in its consolidated revenue at Rs 187.77 crore compared to Rs 174.97 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 85.65 crore, while the PAT of the company stood at Rs 57.52 crore, from Rs 64.29 crore last year in the same quarter.

Business Overview

MSTC (Metal Scrap Trade Corporation) Limited undertakes trading activities, e-commerce and also disposal of ferrous and non-ferrous scrap, surplus stores, minerals, agriculture and forest products, etc. The company is owned and controlled by the Government of India.

Stock Price Movement

Today, the stock opened at Rs 574.75, with a high and low of Rs 670.65 and Rs 568.55, respectively. The stock closed trading at Rs 644, which increased by 13.74%. The stock has a 52-week high of Rs 670.65 and a 52-week low of Rs 239.65. The company has an ROCE of 37.9% and an ROE of 33.6%, with a market capitalisation of Rs 4,537 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.