MSTC Ltd.: Growth through to E-Commerce

Stock Opportunities
151

From the tyre-recycling data you shared, it doesn’t appear to be a lucrative business.

Even at 2 million tonnes of annual tyre production, the math — 2,000,000 tonnes × ₹2 × 1% — works out to only about ₹4Cr

2 Likes
158

Wow!, its very different when we put it the numbers and calc rather than just reading the million tons and doing mental calculations. I thought it would be a substantial no.
Thanks!

1 Like
159

2 Rs is per kg price not per tonne. 1 tonne = 1000 kg, now do the calculations

3 Likes
160

Dropping my screener AI notes for New Initiatives/ Additional Revenue opportunity

New Businesses / Initiatives

MSTC’s current state focuses on e-commerce consolidation (scrap ~50% revenue; auctions/events balance), with new thrusts in software platforms/exchanges (SAAS model), long-term contracts, and private sector (e.g., equipment leasing). Management emphasizes “diversification and sustainability” amid scrap price softness, govt dependency (~90% revenue), and tapering marketing.

From Q2 FY26 Concall/Presentation (H1 FY26, Nov 2025) & earlier docs:

1. EPR Certificate Trading Platform (CPCB award, Sep 2025)

  • Develop/operate National EPR Certificate Exchange (hazardous waste +5-10 categories).
  • Status: Under development; first exchange-like platform.
  • Mgmt View: “game changer… significant revenue inflows… holds good potential… positive from FY27/FY28”(initial costs high; offline trading now).
  • PAT Add: No figures; “volumes up with new categories”.

2. Gold Bullion TRQ Platform (DGFT nomination, Nov 2025)

  • Online allocation of Tariff Rate Quota for gold imports (MSMEs/non-MSMEs; least-subsidy bidding).
  • Status: Development; complex algorithm; transaction fees from registrations/events.
  • Mgmt View: “fair volume… pave way for other commodities”.
  • PAT Add: “Premature”; small development fees now.

3. Travel Portal

  • B2B/B2C govt-focused (central ministries/PSUs; compete Balmer Lawrie/IRCTC); expand private/B2C.
  • Status: Planned FY27 Q1; low capex (leverage data centers).
  • Mgmt View: “ample opportunity in govt sector… revenues always welcome”.
  • PAT Add: “Not significant initially”.

4. Upkaran (Equipment Leasing Portal)

  • Digital leasing/purchase for industry equipment (OEMs/dealers).
  • Status: Launched recently; onboarding stakeholders.
  • Mgmt View: “new area… revenue after 2-3 months” (transaction fees TBD).
  • PAT Add: Early stage; pilot traction from India Steel Summit.

5. KPKB Retail Portal

  • Software for Kendriya Police Kalyan Bhandar (canteen ops for central police).
  • Status: Final delivery stage.
  • Mgmt View: “path-breaking… pave way for military/other entities”.
  • PAT Add: Backbone software; replicable.

6. Long-term Contracts / Portals

Initiative Details Status
Syama Prasad Mookerjee Port 30-yr MoU for port property leasing (~₹5,000 Cr value). Signed; “sustainable long-term”.
Karnataka Liquor Licenses Excise dept auctions (post-Rajasthan success). Agreement signed.
Chhattisgarh Sand Blocks Minor minerals (replicating UP success). MoU signed.
Green Steel Portal NISST/MoS certification. Launched Oct 2025.
Property/Realty Portal State assets (e.g., Telangana ₹2,914 Cr land). Active; high competition/prices.

Other Emerging (Q1 FY26/FY25):

  • Data Center Monetization: Delhi DR site (operational ~Q3 FY26); surplus capacity post-captive use.
  • Private Sector Push: Reverse auctions, bulk assets (Reliance/Vedanta/JSW/Tata pilots); processed scrap (L&T).
  • Software/SAAS: SIMS 2.0, dashboards, coal gasification; mining ERPs.

Overall Strategy (CMD, Q2 FY26): “consolidation… primary thrust e-commerce + software platforms… strengthen/diversify revenue… incremental growth 2-3 years”.

PAT Contribution in Coming Years

No Explicit Guidance: Management avoids numbers (“would not like to put numbers… too early… steady growth”); event-driven model limits forecasts. Focus: 10-12% revenue CAGR historical e-commerce; “cushion” vs. client losses (e.g., Coal India back ~10% e-comm).

Timeline Expected PAT Add Rationale / Risks
FY26 Minimal (₹5-10 Cr) Ramp-up costs (EPR/Gold); Upkaran/KPKB pilots; Coal India ~₹3-4 Cr/qtr revenue.
FY27 ₹20-40 Cr EPR/TRQ volumes; Travel/Upkaran stabilize; ports trickle (small % fees).
FY28+ ₹50+ Cr (10-20% total PAT) Exchanges scale (EPR “game-changer”); replicable SAAS (KPKB); private diversification.
  • Base Case: +100-200 bps topline growth initially (“incremental”); EBITDA margins ~65-70% sustained.
  • Upside: Govt mandates (EPR policy); private traction.
  • Risks: Client shifts (GeM); delays (2-3 yr maturation); JV drag (MMRPL losses ₹3.6 Cr H1 FY26).

Mgmt Quote (Q2 FY26): “new ventures… growth supplemented… robust performance”; no “exponential”. Normalized PAT run-rate ~₹180-200 Cr (core); new adds 10-25% by FY28.

3 Likes