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INVESTMENT INSIGHTS

Check Before You Invest : Modern Threads (India) Ltd

BSE: 500282 NSE: MODTHREAD ISIN: INE794W01014
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Modern Threads (India) Ltd belong to?
Modern Threads (India) Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Modern Threads (India) Ltd a good quality company?
Modern Threads (India) Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Modern Threads (India) Ltd undervalued or overvalued?
Modern Threads (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Modern Threads (India) Ltd a good buy now?
Modern Threads (India) 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

Q.1 Revenue growth of Modern Threads (India) Ltd?
Modern Threads (India) Ltd revenue growth is -13.5% for FY-2025 , which is below its 5 year CAGR of 5.3% , indicating slower growth.
Q.2 Gross Profit margin of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025 , which is below its 5 year median of 4.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.38% for FY-2025 , which is below its 5 year median of 5.13% indicating decreasing margins.
Q.4 Net Profit Margin of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Net Profit Margin is 1.3% for FY-2025 , is below with its 5 year median of 3.57%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3.6 4.6
Operating Profit Margin 0.38 5.13
Net Profit Margin 1.3 3.57
Q.5 Return on Asset of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Return on Asset is 1.57%, which is below its 5 year historical median of 6.09%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Return on equity is 2.57% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Return on capital employed is 4.47% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Cash conversion cycle is 116 days, above its historical median of 87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.21 1.59
ROE 2.57 -
ROCE 4.47 14.97
Cash Conversion Cycle 116 days 87 days
Q.9 Debt to Equity ratio of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Debt-to-Equity ratio is 0.16 , which is lower with the industry average of 0.36 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Modern Threads (India) Ltd?
Modern Threads (India) Ltd Debt to cash flow from operations is -2.79 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Modern Threads (India) Ltd?
Promoters hold 65.16% of the Modern Threads (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Modern Threads (India) Ltd vs industry peers?
Modern Threads (India) Ltd revenue CAGR is 5.33% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 260 118.3
Gross Profit 9.4 3
Operating Profit 1 4.4
Net Profit 3 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.21 0.94
ROE 2.57 -
ROCE 4.47 5.99
Cash Conversion Cycle (days) 116.03 61

Valuation & price assessment

Q.1 Stock return of Modern Threads (India) Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 29.47% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 29.5%
Q.3 Valuation ratios of Modern Threads (India) Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 14.69 0.01 19.51
Price to Book 1.21 0.00 0.73
Price to Sales 0.59 0.01 0.34
EV to EBITDA 8.8 5.81 7.32

Check more companies

1. Trident
2. Sanathan Textiles
3. Nitin Spinners
4. Filatex India
5. Pashupati Cotspin
6. Sumeet Inds
7. Jaybharat Textiles
8. Nahar Spinning Mills
9. GHCL Textiles
10. Ambika Cotton Mills
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