Shares of STC India fell by 10% for the second consecutive day on Thursday, trading at Rs 135.15 on BSE, marking a two-day decline of 19%. This slump represents a 24% drop from its 52-week high of Rs 177.65, reached on Tuesday, October 17, 2023.
The stock's recent performance had been notably positive, rising by 51% from Rs 117.40 on Tuesday, October 11, and nearly doubling in market price over the past three months. However, recent closure reports have sparked investor uncertainty.
The future of STC India, along with two other government-owned firms, MMTC and PEC, is set to be decided in a meeting led by Commerce Minister Piyush Goyal on Monday, October 23. The companies are all involved in the trading and export of a variety of commodities including rice, wheat, sugar, pulses, edible oils, fertilizers, coal, and bullion.
As of September 30, 2023, the central government held a commanding 90% stake in STC India. Retail investors owned an additional 8.24% of the company's shares, with bodies of corporate and insurance companies holding stakes of 0.90% and 0.63%, respectively.
Despite being non-operative in the financial year 2023 with no business activities reported, STC India posted a net profit after tax of Rs 37.11 crore. The company attributed this to increased rental income and reduced establishment costs.
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