MSTC rises after appointment as selling agent for NCL

MSTC rose 3.34% to Rs 95.95 after Northern Coalfields appointed the company as its selling agent.

Northern Coalfields (NCL), a Government of India undertaking has appointed MSTC as the selling agent for disposal scrap/rejected/condemned/unserviceable plant and machinery, vehicles, surplus stores/spares/e-waste/chemical waste, etc. The agreement will remain valid for two years from the date of execution of agreement. The announcement was made after market hours on Friday, 11 October 2019.

As of 30 June 2019, the Government of India held 4.62 crore equity shares or 65.63% stake in the company.

Shares of MSTC advanced 5.78% to its current market price of Rs 95.95 in four trading sessions from its previous closing low of Rs 90.70 on 7 October 2019.

Meanwhile, the S&P BSE Sensex was up 165 points or 0.43% to 38,291.59.

On the BSE, 3,711 shares were traded in the counter so far compared with average daily volumes of 3,602 shares in the past two weeks. The stock hit an intraday high of Rs 96.80 and an intraday low of Rs 91.65 so far during the day.

The stock hit a 52-week high of Rs 120 on 12 April 2019. The stock hit a 52-week low of Rs 70.40 on 14 August 2019.

MSTC's consolidated net profit fell 46.3% to Rs 29.08 crore on a 23.6% decline in net sales to Rs 485.41 crore in Q1 June 2019 compared with Q1 June 2018.

State-run MSTC specializes in international trade of ferrous input materials and imported millions of tons of ferrous melting scrap, old ships for breaking, sponge iron, hot briquetted iron, re-rollable scrap, etc. The company also undertakes marketing of ferrous and miscellaneous scrap arising from integrated steel plants, engineering companies, refineries, power plants, coal and transport sector, defence and other government departments / private sector organisations in the domestic market.

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