State Trading Corporation of India Ltd (STCINDIA) is an Indian government-owned international trading company, originally established in 1956. It was responsible for managing import and export operations, functioning as an independent entity under the Companies Act, 1956, and operating under the administrative jurisdiction of the Ministry of Commerce & Industry. The Corporation's headquarters are located at Tolstoy Marg, New Delhi - 110001, INDIA.
In the pre-liberalisation era, STC played a crucial role in the Indian economy, acting as an arm of the Government of India not only to regulate foreign trade but also for intervention in the domestic market. What began as an initiative to engage in trade with East European countries in 1956, evolved into a premier international trading house that operated for over six decades.
Historically, until 1990, STC's trade basket predominantly comprised bulk agro products, such as rice, wheat, castor oils, sugar, and edible oils. To meet the challenges posed by liberalisation and globalisation of trade policies, STC diversified into new areas of trade over two decades, which included bullion, hydrocarbons, metals, minerals, ores, fertilisers, and petro-chemicals.
The company traditionally handled a wide range of commodities including wheat, cashew, coffee, rice, tea, tobacco, rubber, sugar, extractions, opium, HPS groundnut, spices, castor oil and seeds, and jute goods. It also dealt in manufactured products such as chemicals, drugs and medical disposables, engineering and construction materials, consumer products, textiles and garments, leatherware, processed foods, iron ore, and steel raw materials. On the import side, the company imported edible oils, sugar, wheat, fatty acids, pulses, hydrocarbons, gold and silver, minerals/metals, petro-chemicals, fertilizers, scientific instruments, hospital/police equipment, FMCG goods, and IT products.
Currently, STC has not been undertaking any business activity and is continuing as a non-operative company. This represents a significant shift from its historical role as a premier international trading house. The company recently stopped undertaking any new business activity and is functioning as a non-operative entity for the time being.
STC has one subsidiary, STCL Ltd. However, STCL Ltd. is in the process of winding up and has ceased all its business activities since FY2014-15 onwards.
As of the latest available data, STC has a market capitalization of ₹882 Crore (down -3.17% in 1 year) and reported a profit of ₹35.7 Crore. The company's recent financial performance across quarters shows mixed results:
- Q3 FY25 (December 2024): Net Profit: ₹1.61 Cr
- Q2 FY25 (September 2024): Net loss of ₹7.48 Crore
- Q1 FY25 (June 2024): Net profit of ₹27.45 Crore
The company's financial statements indicate several concerns for FY25, including qualified audit opinions, asset overstatements, large doubtful receivables, and doubts regarding its going concern status. Additionally, the company has significant contingent liabilities amounting to ₹13,187 Crore.
Presently, 90.00% of STC's equity is owned by the Government of India. Promoter holding in State Trading Corporation of India Ltd remained at 90.00% as of March 2025, consistent with June 2024. This consistent holding demonstrates the government's continued control and commitment to the company.
The company has experienced recent changes in its leadership structure. Shri Nitin Kumar Yadav IAS (HR:2000), Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, was appointed as Chairman & Managing Director on the Board of STC Limited with effect from April 28, 2025. Ms. Anoopa Sankarankutty Nair was appointed Director-Finance at STC effective June 05, 2025.
The stock has shown volatility in recent periods. The 52-week high for State Trading Corporation of India Ltd (STCINDIA) is ₹252, and the 52-week low is ₹104.11. Key valuation metrics include a P/E (price-to-earnings) ratio of 14.40 and a P/B (price-to-book) ratio of -0.16.
The stock is listed on both major Indian exchanges and has seen increased investor interest, with search interest for "State Trading Corporation of India Ltd Stock" increasing by 303% in the last 30 days, reflecting an upward trend in search activity.
Given its current non-operative status, significant contingent liabilities, and the "going concern" issues, investors should carefully consider the inherent risks associated with investing in STC, particularly its transition away from active trading operations and the qualified financial statements.
