Check Before You Invest : Modi Rubber Ltd

Q: Which industry/sub-sector does Modi Rubber Ltd belong to?

Modi Rubber Ltd belongs to the Miscellaneous sector, operating specifically within the Miscellaneous segment.

Q: Is Modi Rubber Ltd a good quality company?

Modi Rubber Ltd is a weak quality company, based on a inconsistent 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 Modi Rubber Ltd undervalued or overvalued?

Modi Rubber Ltd appears Overvalued, as its key valuation ratios are higher 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: -, Historic Median: 20.03. Price to Book, Current: 1.51, Historic Median: 0.98. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: -28.86, Historic Median: 9.81

Q: Is Modi Rubber Ltd a good buy now?

Modi Rubber Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Modi Rubber Ltd?

Modi Rubber Ltd revenue growth is 45.5% for FY-2025, which is above its 5-year CAGR of -4.85%, indicating faster growth.

Q: Gross Profit margin of Modi Rubber Ltd?

Modi Rubber Ltd Gross profit margin which is the profit after deduction of direct costs, is 157.7% for FY-2025, which is below its 5-year median of 492.9%, indicating decreasing margins.

Q: Operating Profit Margin of Modi Rubber Ltd?

Modi Rubber Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -586.77% for FY-2025, which is above its 5-year median of -692.13% indicating increasing margins.

Q: Net Profit Margin of Modi Rubber Ltd?

Modi Rubber Ltd Net Profit Margin is 59.05% for FY-2025, is below its 5-year median of 255.96%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 157.7, Historic Median: 492.9. Operating Profit Margin (%), Current: -586.77, Historic Median: -692.13. Net Profit Margin (%), Current: 59.05, Historic Median: 255.96

Q: Return on Asset of Modi Rubber Ltd?

Modi Rubber Ltd Return on Asset is 0.52%, which is below its 5-year historical median of 1.89%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Modi Rubber Ltd?

Modi Rubber Ltd Return on capital employed is 1.51% for FY-2025, which is below its 5-year historical median of 4.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Modi Rubber Ltd

Snapshot

Q.1 Which industry/sub-sector does Modi Rubber Ltd belong to?

Modi Rubber Ltd belongs to the Miscellaneous sector, operating specifically within the Miscellaneous segment.

Q.2 Is Modi Rubber Ltd a good quality company?

Modi Rubber Ltd is a weak quality company, based on a inconsistent 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 Modi Rubber Ltd undervalued or overvalued?

Modi Rubber Ltd appears Overvalued, as its key valuation ratios are higher 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	-	20.03
Price to Book	1.51	0.98
Price to Sales	-	-
EV to EBITDA	-28.86	9.81

Q.4 Is Modi Rubber Ltd a good buy now?

Modi Rubber Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Modi Rubber Ltd?

Modi Rubber Ltd revenue growth is 45.5% for FY-2025, which is above its 5-year CAGR of -4.85%, indicating faster growth.

Q.2 Gross Profit margin of Modi Rubber Ltd?

Modi Rubber Ltd Gross profit margin which is the profit after deduction of direct costs, is 157.7% for FY-2025, which is below its 5-year median of 492.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Modi Rubber Ltd?

Modi Rubber Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -586.77% for FY-2025, which is above its 5-year median of -692.13% indicating increasing margins.

Q.4 Net Profit Margin of Modi Rubber Ltd?

Modi Rubber Ltd Net Profit Margin is 59.05% for FY-2025, is below its 5-year median of 255.96%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	157.7	492.9
Operating Profit Margin (%)	-586.77	-692.13
Net Profit Margin (%)	59.05	255.96

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Modi Rubber Ltd?

Modi Rubber Ltd Return on Asset is 0.52%, which is below its 5-year historical median of 1.89%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Modi Rubber Ltd?

Modi Rubber Ltd Return on capital employed is 1.51% for FY-2025, which is below its 5-year historical median of 4.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Modi Rubber Ltd?

Modi Rubber Ltd Return on equity is 0.97% for FY-2025, which is below its 5-year historical median of 3.93%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Modi Rubber Ltd?

Modi Rubber Ltd Cash conversion cycle is -73 days, below its 5-year historical median of -50 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.01	0.01
ROE (%)	0.97	3.93
ROCE (%)	1.51	4.34
Cash Conversion Cycle	-73 days	-50 days

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

Q.9 Debt to Equity ratio of Modi Rubber Ltd?

Modi Rubber Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Modi Rubber Ltd?

Modi Rubber Ltd Debt to cash flow from operations is -0.08, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Modi Rubber Ltd?

Q.1 Promoter shareholding and pledge status of Modi Rubber Ltd?

Promoters hold 62.69% of the Modi Rubber Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Modi Rubber Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Modi Rubber Ltd vs industry peers?

Modi Rubber Ltd revenue CAGR is -4.85%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	45.5	-
Gross Profit Growth (%)	-85.4	12.3
Operating Profit Growth (%)	0	13.4
Net Profit Growth (%)	-93.1	15.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.01	0.27
ROE (%)	0.97	2.93
ROCE (%)	1.51	8.78
Cash Conversion Cycle (days)	-72.83	-

Valuation & price assessment

Q.1 Stock return of Modi Rubber Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.2%	13.7%	32.8%	17.8%

Q.2 Valuation ratios of Modi Rubber Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 20.03, indicating that the stock is trading below 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	-	20.03	27.68
Price to Book	1.51	0.98	2.36
Price to Sales	-	-	4.98
EV to EBITDA	-28.86	9.81	10.84

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Check Before You Invest : Modi Rubber Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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