ScoreWhy is Modison Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.87 times
2
Poor long term growth as Operating profit has grown by an annual rate 8.59% of over the last 5 years
3
Positive results in Sep 25
- PBT LESS OI(Q) At Rs 14.42 cr has Grown at 92.3% (vs previous 4Q average)
- ROCE(HY) Highest at 15.91%
- OPERATING PROFIT TO INTEREST(Q) Highest at 11.32 times
4
With ROCE of 14.4, it has a Very Attractive valuation with a 1.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -13.62%, its profits have risen by 61.4% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 4
5
Majority shareholders : Promoters
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 7.53% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.62% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Modison should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Modison for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Modison
-13.62%
-0.29
46.68%
Sensex
8.65%
0.76
11.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.41%
EBIT Growth (5y)
8.59%
EBIT to Interest (avg)
9.40
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
0.36
Sales to Capital Employed (avg)
1.74
Tax Ratio
26.02%
Dividend Payout Ratio
37.98%
Pledged Shares
0
Institutional Holding
0.48%
ROCE (avg)
12.67%
ROE (avg)
10.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
35
Price to Book Value
2.14
EV to EBIT
12.73
EV to EBITDA
10.54
EV to Capital Employed
1.84
EV to Sales
1.06
PEG Ratio
0.25
Dividend Yield
4.03%
ROCE (Latest)
14.43%
ROE (Latest)
14.01%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
PBT LESS OI(Q)
At Rs 14.42 cr has Grown at 92.3% (vs previous 4Q average
ROCE(HY)
Highest at 15.91%
OPERATING PROFIT TO INTEREST(Q)
Highest at 11.32 times
NET SALES(Q)
Highest at Rs 145.16 cr
PBDIT(Q)
Highest at Rs 18.45 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 12.71%
PAT(Q)
Highest at Rs 10.89 cr.
EPS(Q)
Highest at Rs 3.59
-7What is not working for the Company
INTEREST(Latest six months)
At Rs 3.70 cr has Grown at 22.92%
DEBT-EQUITY RATIO(HY)
Highest at 0.38 times
Loading Valuation Snapshot...
Here's what is working for Modison
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.42 cr has Grown at 92.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 7.50 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 11.32 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
At Rs 10.89 cr has Grown at 60.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.80 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 145.16 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 18.45 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 12.71%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 14.42 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 10.89 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.59
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Modison
Interest - Latest six months
At Rs 3.70 cr has Grown at 22.92%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.38 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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