Are Modern Shares latest results good or bad?

Modern Shares & Stockbrokers' latest financial results for the quarter ended September 2025 reveal several operational challenges and trends. The company reported net sales of ₹1.04 crores, which reflects a year-on-year decline of 7.14% from ₹1.12 crores in the same quarter last year. This decline raises concerns about the company's ability to achieve sustainable top-line growth in a competitive market.
In terms of profitability, the net profit for the quarter was ₹0.16 crores, down 15.79% compared to ₹0.19 crores in the previous year. While there was a sequential improvement in net profit of 6.67% from the previous quarter, the year-on-year comparison indicates a struggle to maintain profitability. The operating margin improved to 25.96%, up from 20.20% in the prior quarter and 24.11% year-on-year, suggesting some operational efficiency gains despite the revenue challenges.

The company's average return on equity (ROE) remains low at 1.74%, indicating persistent issues with capital efficiency and shareholder value creation. The absence of institutional interest, with 0.0% holdings from institutional investors, further underscores concerns about the company's appeal to professional investors.

Overall, the results indicate that while there are some positive operational metrics, such as margin expansion, the underlying revenue decline and low profitability raise significant questions about the company's long-term viability. Additionally, the company saw an adjustment in its evaluation, reflecting the ongoing challenges it faces in the market.