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 10.72% of over the last 5 years
3
Positive results in Dec 25
- ROCE(HY) Highest at 15.91%
- PBDIT(Q) Highest at Rs 18.94 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 13.18%
4
With ROCE of 14.4, it has a Very Attractive valuation with a 1.9 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 -2.97%, its profits have risen by 77.3% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 3.9
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 10.69% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.97% 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
-2.97%
-0.07
44.74%
Sensex
9.01%
0.78
11.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.78%
EBIT Growth (5y)
10.72%
EBIT to Interest (avg)
8.92
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
0.36
Sales to Capital Employed (avg)
1.74
Tax Ratio
25.94%
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
13
Industry P/E
38
Price to Book Value
2.22
EV to EBIT
11.27
EV to EBITDA
9.52
EV to Capital Employed
1.90
EV to Sales
1.06
PEG Ratio
0.17
Dividend Yield
3.87%
ROCE (Latest)
14.43%
ROE (Latest)
14.01%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
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 Trend15What is working for the Company
ROCE(HY)
Highest at 15.91%
PBDIT(Q)
Highest at Rs 18.94 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.18%
PBT LESS OI(Q)
Highest at Rs 14.42 cr.
PAT(Q)
Highest at Rs 11.38 cr.
EPS(Q)
Highest at Rs 6.17
-8What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.38 times
INTEREST(Q)
Highest at Rs 2.10 cr
Loading Valuation Snapshot...
Here's what is working for Modison
Operating Profit (PBDIT) - Quarterly
Highest at Rs 18.94 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.18%
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 11.38 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.17
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 - Quarterly
At Rs 2.10 cr has Grown at 28.83%
Quarter on Quarter (QoQ)MOJO 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
Interest - Quarterly
Highest at Rs 2.10 cr
in the last five quarters and Increased by 28.83 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
