Check Before You Invest : Modern Engineering And Projects Ltd

Q: Which industry/sub-sector does Modern Engineering And Projects Ltd belong to?

Modern Engineering And Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is Modern Engineering And Projects Ltd a good quality company?

Modern Engineering And Projects Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Modern Engineering And Projects Ltd undervalued or overvalued?

Modern Engineering And Projects Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 3.36, Historic Median: -. Price to Book, Current: 0.92, Historic Median: 0.91. Price to Sales, Current: 0.51, Historic Median: 0.61. EV to EBITDA, Current: 2.42, Historic Median: 2.20

Q: Is Modern Engineering And Projects Ltd a good buy now?

Modern Engineering And Projects Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd revenue growth is 2.6% for FY-2025, which is below its 5-year CAGR of 336.99%, indicating slower growth.

Q: Gross Profit margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025, which is above its 5-year median of -2.1%, indicating increasing margins.

Q: Operating Profit Margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.71% for FY-2025, which is above its 5-year median of -4.06% indicating increasing margins.

Q: Net Profit Margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Net Profit Margin is 7.62% for FY-2025, is above its 5-year median of -3.91%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.5, Historic Median: -2.1. Operating Profit Margin (%), Current: 7.71, Historic Median: -4.06. Net Profit Margin (%), Current: 7.62, Historic Median: -3.91

Q: Return on Asset of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Return on Asset is 8.39%, which is above its 5-year historical median of -1.6%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Return on capital employed is 23.52% for FY-2025, which is above its 5-year historical median of -1.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Modern Engineering And Projects Ltd

Snapshot

Q.1 Which industry/sub-sector does Modern Engineering And Projects Ltd belong to?

Modern Engineering And Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Modern Engineering And Projects Ltd a good quality company?

Modern Engineering And Projects Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Modern Engineering And Projects Ltd undervalued or overvalued?

Modern Engineering And Projects Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	3.36	-
Price to Book	0.92	0.91
Price to Sales	0.51	0.61
EV to EBITDA	2.42	2.20

Q.4 Is Modern Engineering And Projects Ltd a good buy now?

Modern Engineering And Projects Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd revenue growth is 2.6% for FY-2025, which is below its 5-year CAGR of 336.99%, indicating slower growth.

Q.2 Gross Profit margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025, which is above its 5-year median of -2.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.71% for FY-2025, which is above its 5-year median of -4.06% indicating increasing margins.

Q.4 Net Profit Margin of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Net Profit Margin is 7.62% for FY-2025, is above its 5-year median of -3.91%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.5	-2.1
Operating Profit Margin (%)	7.71	-4.06
Net Profit Margin (%)	7.62	-3.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Return on Asset is 8.39%, which is above its 5-year historical median of -1.6%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Return on capital employed is 23.52% for FY-2025, which is above its 5-year historical median of -1.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Return on equity is 26.36% for FY-2025, which is above its 5-year historical median of -4.37%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Cash conversion cycle is 18 days, in line with its 5-year historical median of 18 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.1	1.1
ROE (%)	26.36	-4.37
ROCE (%)	23.52	-1.6
Cash Conversion Cycle	18 days	18 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Debt-to-Equity ratio is 0.10, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Modern Engineering And Projects Ltd?

Modern Engineering And Projects Ltd Debt to cash flow from operations is -0.21, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Modern Engineering And Projects Ltd?

Q.1 Promoter shareholding and pledge status of Modern Engineering And Projects Ltd?

Promoters hold 33.29% of the Modern Engineering And Projects Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Modern Engineering And Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Modern Engineering And Projects Ltd vs industry peers?

Modern Engineering And Projects Ltd revenue CAGR is 336.99%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	2.6	-
Gross Profit Growth (%)	-4.7	17
Operating Profit Growth (%)	-25.3	14
Net Profit Growth (%)	99.7	20.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.1	0.63
ROE (%)	26.36	6.16
ROCE (%)	23.52	10.5
Cash Conversion Cycle (days)	17.75	52

Valuation & price assessment

Q.1 Stock return of Modern Engineering And Projects Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 54.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	54.3%	59.5%	40.5%

Q.2 Valuation ratios of Modern Engineering And Projects Ltd vs historical?

The current P/E ratio of 3.36 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	3.36	-	21.52
Price to Book	0.92	0.91	1.74
Price to Sales	0.51	0.61	1.51
EV to EBITDA	2.42	2.20	11.49

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Check Before You Invest : Modern Engineering And Projects Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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