MSTC Ltd.
ISIN: INE255X01014 • Market Cap: ₹4,978 Cr
The 5-Pillar Quality Audit for MSTC Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (61.1%), Return on Capital Employed (20.5%), and equity compounding (55.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.20 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-18.8%) and 3Y PAT CAGR (-0.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 21.24 vs PEG of — and Dividend Yield of 2.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 64.8%, backed by 6.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.5%)
MSTC Ltd. generates exceptional return on capital employed of 20.5%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 55.1%)
Shareholder equity compounds at a healthy 55.1%, exceeding average Indian equity benchmarks.
Attractive Valuation Margin (P/E: 21.24)
Trading at a P/E multiple of 21.24, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: -18.8%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Services space.
Quantitative Strategy Eligibility
Checking MSTCLTD against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Services Sector Peer Comparison
Compare MSTCLTD directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| MSTC Ltd. (MSTCLTD)Current | 68/100 | ₹4,978 Cr | 21.24 | 20.5% | 0.20 | — |
| Adani Ports and Special Economic Zone Ltd. (ADANIPORTS) | 71/100 | ₹3.87 Lakh Cr | 29.51 | 11.6% | 0.57 | View |
| InterGlobe Aviation Ltd. (INDIGO) | 53/100 | ₹2.00 Lakh Cr | — | 5.7% | 0.26 | View |
| GMR Airports Ltd. (GMRAIRPORT) | 73/100 | ₹1.08 Lakh Cr | 225.70 | 5.8% | -15.03 | View |
| JSW Infrastructure Ltd. (JSWINFRA) | 68/100 | ₹76,925 Cr | 51.79 | 13.1% | 0.59 | View |
| Container Corporation of India Ltd. (CONCOR) | 66/100 | ₹39,147 Cr | 31.52 | 13.5% | 0.00 | View |
Frequently Asked Questions: MSTC Ltd.
Q:What is the 5-Pillar Fundamental Score for MSTC Ltd. (MSTCLTD)?
MSTC Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (96/100), Financial Health (74/100), Growth (18/100), Valuation (80/100), and Ownership Quality (68/100).
Q:Is MSTCLTD fundamentally strong for long-term investment?
MSTCLTD currently holds a moderate quality rating of 68/100. While it operates in the Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does MSTCLTD pass the Coffee Can Investing filter?
No. MSTCLTD does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does MSTCLTD compare against other Services peers?
Within India's Services sector, MSTCLTD trades at a P/E of 21.24 and generates an ROCE of 20.5%. Compare its 5-Pillar score of 68/100 against top sector peers like Adani Ports and Special Economic Zone Ltd. (71/100), InterGlobe Aviation Ltd. (53/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.