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MMTC Ltd. Stock Analysis

Small Cap
Evaluated by 1866 users | BSE: 513377 | NSE: MMTC |
Trading
Established in 1963, Minerals and Metals Trading Corporation (MMTC), one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over $7 billion. MMTC is major global player in the minerals trade and is the single largest exporter of...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
MMTC Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 8.31%5.53%8.98%6.43%13.15%2.74%2.22%0.29%3.78%6.54%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 45,26469,05666,32528,59825,27018,28412,56911,70816,45128,979
Y-o-Y Gr. Rt.-52.6%-4%-56.9%-11.6%-27.6%-31.3%-6.9%40.5%76.2%
Adjusted EPS (Rs.) 1.360.730.980.621.690.230.1-0.070.40.65
Y-o-Y Gr. Rt.--46.3%34.3%-36.7%172.6%-86.4%-56.5%-170%NA62.5%
Book Value per Share (Rs.) 8.589.29.488.948.959.069.419.569.669.93
Adjusted Net Profit 20411014892.625434.515.4-10.360.596.8
Net Op. Cash Flow (Rs. Cr.) -735-99.9-1,31854056.7-309-95.6300-472-329
Debt to Cash Flow from Ops -7.03-60.91-2.62.747.29-0.93-2.841.47-1.1-2.8
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
MMTC Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -4.8%2.8%32.1%76.2%
Adjusted EPS -7.9%-17.4%86.6%62.5%
Book Value per Share 1.62.11.82.8
Share Price -27.5% -7.3% -24.8% 17%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 16.958.2110.556.718.92.551.11-0.724.26.59
Operating Profit Margin (%) 0.190.10.07-0.070.79-0.27-0.59-0.20.210.66
Net Profit Margin (%) 0.450.160.220.3210.190.12-0.090.370.33
Debt to Equity 4.014.412.411.10.310.210.190.310.360.62
Working Capital Days 39465273578511712110452
Cash Conversion Cycle 53512109542342
Entity Percentage Holding
Promoters 89.93%
Institutions 4.03%
Non-Institutions 6.04%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of MMTC Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that MMTC Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of MMTC Ltd.'s performance infers:

MMTC Ltd. earnings have declined by -17.4%, whereas share price has depreciated -7.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of MMTC Ltd. share prices over the last 10 years. Here is what we found out:

MMTC Ltd. share price has depreciated -30% annually over the past ten years.

Established in 1963, Minerals and Metals Trading Corporation (MMTC), one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over $7 billion.

MMTC is major global player in the minerals trade and is the single largest exporter of minerals from India. With its comprehensive infrastructural expertise to handle minerals, the company provides full logistic support from procurement, quality control to guaranteed timely deliveries

Established in 1963, Minerals and Metals Trading Corporation (MMTC), one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over $7 billion.

MMTC is major global player in the minerals trade and is the single largest exporter of minerals from India. With its comprehensive infrastructural expertise to handle minerals, the company provides full logistic support from procurement, quality control to guaranteed timely deliveries of minerals from different ports, through a wide network of regional and port offices in India, as well as international subsidiary.

As a leading player in fertilizers and fertilizer raw material, the company has become a major fertilizer marketing company in India, through planned forward integration of its import activities with the direct marketing of urea, DAP, MOP, sulphur, rock phosphate, SSP and other farming and agricultural inputs.

MMTC is the largest importer of gold and silver in the Indian sub-continent, handling about 146 MT of gold and 1250 MT of silver during 2008-09.  It supplies gold on loan and outright basis to exporters, bullion dealers and jewellery manufacturers on all India.

MMTC has retail jewellery and its own branded 'Sterling Silverware' (Sanchi) showrooms in all the major metro cities of India. It also supplies branded hallmarked gold and studded jewellery. Besides organizing major jewellery exhibitions in India and abroad, the company also has a medallion manufacturing unit for minting of gold/ silver medallions.

MMTC is India's largest seller of imported non-ferrous metals viz. copper, aluminium, zinc, lead, tin and nickel. It also sells imported minor metals like magnesium, antimony, silicon and mercury, as also industrial raw materials like asbestos and also steel and its products. MMTC imports quality products conforming to international specifications like ASTM or BSS or LME approved brands.

The company sources its metals from empanelled suppliers including producers and traders throughout the world.

MMTC is amongst the leading Indian exporters and importers of agro products. The company's bulk exports include commodities such as rice, wheat, wheat flour, soyameal, pulses, sugar, processed foods and plantation products like tea, coffee, jute, etc. It also undertakes extensive operations in oilseed extraction, from the procurement of seeds to the production of de-oiled cakes for export, as well as the production of edible oil for domestic consumption and imports edible oils.

MMTC is the largest non-oil importer in India. It's diverse trade activities encompass third country trade, joint ventures, link deals - all modern day tools of international trading. It has vast international trade network, which includes a wholly owned international subsidiary in Singapore MMTC Transnational Pte. (MTPL), spanning almost all countries in Asia, Europe, Africa, Oceania and Americas.

Its comprehensive infrastructure for bulk cargo handling, with well-developed arrangements for rail and road transportation, warehousing, port and shipping, operations, gives MMTC complete control over trade logistics, both for exports and imports. The company's countrywide domestic network is spread over 75 regional, sub-regional, port and field offices, warehouses and procurement centres.

MMTC's progress in the recent past has taken it from monopoly status to a competitive open market player making a strong thrust towards broad basing its sphere of activities, while consolidating its core areas of business.

To create synergy between its manufacturing, trading and technology partners and to bring optimum efficiency and expertise to its operations worldwide, MMTC has promoted along with government of Orissa, a million tonnes capacity iron and steel plant and a 0.8 million tonne capacity, coke oven battery with by product recovery plant and a captive power plant of 55 MW capacity.

MMTC has a Systems & ERP Division comprising a highly professional team to cope with the highly competitive environment. MMTC's operational offices are all equipped with modern computing tools. ERP has been implemented. A user friendly intranet based Knowledge Management Solution has been made available to its officials.

The company operates 13 regional offices located at Kolkata, Bhubaneshwar, Mumbai, Goa, Ahmedabad, Delhi, Jhandewalan (Delhi), Jaipur and Bangalore, Bellary, Chennai, Hyderabad, Vizag.

Business Areas

  • Minerals
  • Precious Metals
  • Fertilisers
  • Metals
  • Agro Products
  • Coal and Hydrocarbon
  • General trading

Recognition

  • MMTC is the first public sector enterprise to be accorded the 'Five Star Export House' status by the Government of India for long standing contribution to exports.
  • The company has won the top export award from Chemicals and Allied Products Export Promotion Council (CAPEXIL) as the largest exporter of minerals from India for the eighteenth year in a row.
  • MMTC is a proud winner of gold trophy for exports of engineering and metallurgical product in non-SSI sector and also awarded the All India Trophy for highest export in the category of prime metal by EEPC.
  • MMTC has won the gold trophy from FIEO for highest exports in agriculture & plantation product in non-SSI sector.
  • 2011 -CAPEXIL's award for Highest Export in Minerals and Ores Sector for the year 2010-11(20th time in a row).
    MMTC Limited was awarded DHL-CNBC-TV18 International trade award 2010-11, powered by ICRA.
    EEPC Gold Trophy for ‘Star Performance in Product Groups for 2009-10- Export of Non Alloy Pig Iron’- for being Top Exporter – at the 42nd EEPC India National Awards for Export Excellence - held on 22 December 2011
    PRSI National Award 2010-11 – for Festival of Gold (Oct.’11),  in Event Management Category – by the Public Relation Society  of India – held on 23 December 2011
    Top Rankers Award 2010-11 – for Organizational Excellence – held on 23 December 2011
  • 2012
    MoU Excellence Award Limited for the year 2009-10 - by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India – held on 31st January, 2012
    EEPC ‘Star Performer’ Award 2010-11 - in Basic Iron & Steel category in Large Enterprise group - at the 43rd EEPC India National Awards for Export Excellence - held on 23 March 2012
    EEPC Silver Trophy for being Top Exporter of the Year 2010-11 in Medium Enterprise Group - held on 28 September 2012
    Dun & Bradstreet-Rolta Corporate Award 2011 - in Trading Sector – by Dun & Bradstreet & Rolta - held on 2 June 2012
    Dun & Bradstreet PSU Award 2012 - in Trading Sector – by Dun & Bradstreet - held on 29 May 2012
    BT Star PSU Excellence Award 2012 - for contribution  towards CSR – by Bureaucracy Today - held on 25 May 2012
    Rajbhasha Award – received for the third consecutive year in recognition of commendable work done in the field of our national language – on 3 August, 2012
    PRSI National Award 2011-12 – for Festival of Gold (Apr.’12), in Event Management Category – by the Public Relation Society of India – held on 29 September 2012
  • 2013
    Most Caring Companies Award' - received for Global CSR Excellence - presented by the World CSR Congress -  held on 18 February 2013
    Recognition for being one of the 30 Most Talented HR Leaders in PSUs  & HR Leadership Award - to Director (Personnel)  Shri Rajeev Jaideva for Global HR Excellence - presented by the Institute of Public Enterprise (IPE) - held on 16 - 17 February 2013
    "
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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