Discover and read the best of Twitter Threads about #MSTC

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#MSTC results - right way to look at these numbers is to add back provisions to PAT and then compare. If add provisions to PBT and then take tax rate as 33%, your number will match with the reported tax.

Provisions relates to cash and carry business which has been stopped
a year back. There was around 120 crs of provisions related to that. I wish it should write off everything once for all so that it can start next year on a clean slate..

Only negative according to me is no Q-o-Q growth in e-comm revenue which I was expecting due to higher
realisations during the qtr.

Its your call to hold or sell..this is the story of future... If you want to play on scrappage policy then #MSTC is biggest beneficiary...provision write off was due and may happen in Q4 again but I hope from next year...things will look different
Read 4 tweets
#MSTC – With and without #Scrappagepolicy

Scenario 1 – No Scrappage Policy

As promised by management, MSTC will be able to clean up the balance sheet by Sep’21. Trading business is already closed. FSNL divestment has started by DIPAM.
Post Sep’21, MSTC may have around 800 crs cash (assuming 300 crs proceeds from FSNL) in the BS, Rs 115 per share..

It will have E-Comm as the only business with multiple opportunities which are detailed in the note attached below..
Ex cash RoCE will be 50% plus with growth rate of 15-20% for E-Comm business with 250 crs topline and 100 crs PAT (excl. other income) for FY22. Estimated EPS of Rs 15 for core E-comm business.

At 15x PE for core E-Comm value = 15x15 + 115 = 340…
At 20x, it would be 415..
Read 7 tweets

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