MSTC shares jump 8% as Govt issues draft notification on vehicle scrapping rules
Shares of MSTC Ltd surged nearly 8% to ₹479.85 on Sunday after the Ministry of Road Transport and Highways (MoRTH) issued a draft notification on Vehicle Scrapping Rules, inviting suggestions within 30 days.
The proposed amendments to the Central Motor Vehicles Rules, 1989 relate to the registration and functioning of vehicle scrapping facilities. Importantly, the new draft expands the scope of entities eligible for scrapping, extending coverage to firms, societies, companies, and recyclers in ship breaking and recycling.
The move is being seen as a major boost for companies engaged in metal recycling and e-auction services like MSTC, which has a strong presence in facilitating government-led auctions of scrap and obsolete assets.
Market participants believe that the reforms could significantly improve the supply of scrap material for recycling and formalise the sector further. This is expected to enhance business visibility for MSTC, as it plays a central role in digital auctioning of scrap, including vehicles.
Brokerages noted that the vehicle scrappage policy will also indirectly benefit the steel, auto, and recycling value chain, as it will help recycle usable metal and push replacement demand for new vehicles.
Analysts expect MSTC to remain in focus as the government accelerates its push towards sustainable and circular economy practices.
Ahmedabad Plane Crash
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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