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Check Before You Invest : Modern Dairies Ltd

BSE: 519287 NSE: ISIN: INE617B01011
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Modern Dairies Ltd belong to?
Modern Dairies Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Modern Dairies Ltd a good quality company?
Modern Dairies Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is Modern Dairies Ltd undervalued or overvalued?
Modern Dairies Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Modern Dairies Ltd a good buy now?
Modern Dairies 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

Q.1 Revenue growth of Modern Dairies Ltd?
Modern Dairies Ltd revenue growth is -3.7% for FY-2025, which is above its 5-year CAGR of -14.58%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Modern Dairies Ltd?
Modern Dairies Ltd Return on capital employed is 236.72% for FY-2025, which is above its 5-year historical median of 33.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of Modern Dairies Ltd?
Modern Dairies Ltd Return on Asset is 79.24%, which is above its 5-year historical median of 15.92%, indicating improved asset utilization efficiency.
Q.4 Cash conversion cycle of Modern Dairies Ltd?
Modern Dairies Ltd Cash conversion cycle is 2 days, below its 5-year historical median of 10 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Q.5 Gross Profit margin of Modern Dairies Ltd?
Modern Dairies Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is below its 5-year median of 4.7%, indicating decreasing margins.
Q.6 Operating Profit Margin of Modern Dairies Ltd?
Modern Dairies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.01% for FY-2025, which is in line with its 5-year median of 4.09% indicating stable margins.
Q.7 Net Profit Margin of Modern Dairies Ltd?
Modern Dairies Ltd Net Profit Margin is 23.83% for FY-2025, is above with its 5-year median of 5.59%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 3.7 4.7
Operating Profit Margin 4.01 4.09
Net Profit Margin 23.83 5.59
Q.8 Debt to Equity ratio of Modern Dairies Ltd?
Modern Dairies Ltd Debt-to-Equity ratio is 0.22, which is lower with the industry average of 0.59, indicating lower debt levels in the industry.
Q.9 Debt to cash flow from operations of Modern Dairies Ltd?
Modern Dairies Ltd Debt to cash flow from operations is 0.36, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Modern Dairies Ltd?
Promoters hold 55.45% of the Modern Dairies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Modern Dairies Ltd vs industry peers?
Modern Dairies Ltd revenue CAGR is -14.58%, compared to the industry median CAGR of 10.95%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -3.7 11
Gross Profit Growth -27.8 12
Operating Profit Growth -36.4 NAN
Net Profit Growth 144.1 NAN
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 3.33 1.33
ROE - 9.91
ROCE 236.72 11.48
Cash Conversion Cycle (days) 1.81 62

Valuation & price assessment

Q.1 Stock return of Modern Dairies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
18.6% 33.2% 17.1% -27.2%
Q.3 Valuation ratios of Modern Dairies Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 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 4.84 3.60 26.64
Price to Book 1.85 -0.43 2.52
Price to Sales 0.32 0.24 1.43
EV to EBITDA 10.31 10.93 14.44

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