Shares of MSTC Ltd declined by 2.52% to ₹422.75 in Monday’s early trading session following a ₹105.55 crore demand notice from the Income Tax Department for Assessment Year 2019-20. The notice, issued under Section 156 of the Income Tax Act, 1961, includes an interest component of ₹42.45 crore. The government-owned e-commerce and scrap disposal service provider clarified in a regulatory filing that this tax demand will not have any material impact on its financial or operational activities. MSTC has decided to challenge the assessment and will file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], Kolkata.
Despite this setback, MSTC has reported strong financial performance in the latest quarter. The company posted a 506.04% year-on-year (YoY) jump in net profit, reaching ₹250.9 crore for Q3FY25, compared to ₹41.4 crore in the same quarter of the previous fiscal. The profit surge was primarily due to an exceptional gain of ₹275.5 crore in the quarter, compared to a loss of ₹1.9 crore in Q3FY24. Revenue from operations also grew by 12.8% YoY, reaching ₹81.1 crore against ₹71.9 crore a year ago.
As per the latest stock performance, MSTC shares fell from a previous close of ₹433.70 to ₹422.75, marking a ₹10.95 decline. The stock’s day range was ₹418.10 to ₹438.95, while its 52-week range stands at ₹418.10 to ₹1,036.90. The company’s market capitalization is ₹29.72 billion, with a P/E ratio of 7.12 and a dividend yield of 9.71%. The overall market sentiment remains cautious amid the ongoing tax dispute, with investors closely monitoring further developments.
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