MSTC hits record high on heavy volumes; zooms 61% in thus far in January

Nearly 2.9 million equity shares, representing 4.1 per cent of total equity of MSTC, had changed hands on the NSE and BSE till 03:18 pm

Shares of MSTC hit a record high of Rs 263.65, soaring 20 per cent on the BSE on Friday, in an otherwise weak market on the back of heavy volumes.

Trading volumes on the counter more-than-doubled with a combined 2.9 million equity shares, representing 4.1 per cent of total equity of MSTC, changing hands on the NSE and BSE till 03:18 pm. In comparison, the S&P BSE Sensex was down 1.1 per cent at 49,037 levels.

Thus far in the month of January 2021, MSTC has rallied 56 per cent, after the company signed a Memorandum of Understanding (MOU) with Department of Mines and Geology, government of Andhra Pradesh for selection of agency to carry out sand operations in the state of Andhra Pradesh on January 4, 2021.

Recently, CARE Ratings reaffirmed the credit rating to various bank facilities availed by the MSTC. "The ratings assigned to the bank facilities of MSTC continue to draw strength from the long track record and established position of the company in e-commerce segment, Government of India’s (GoI) controlling stake and stable source of revenue from service income," the rating agency said in rationale.

MSTC was set up in September, 1964 for regulating export of ferrous scrap from India. Since 1991, the company has been in direct marketing of melting scrap, coke/coal, iron ore and many other products. MSTC earns stable service income through the e-commerce business and sales done through facilitator mode (majorly raw material for secondary steel producers and petrochemical industry).