Check Before You Invest : Modern Steels Ltd

Q: Which industry/sub-sector does Modern Steels Ltd belong to?

Modern Steels Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Modern Steels Ltd a good quality company?

Modern Steels 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 Steels Ltd undervalued or overvalued?

Modern Steels 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: 3.74, Historic Median: 1.90. Price to Book, Current: 1.05, Historic Median: 1.40. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: 3.76, Historic Median: 3.75

Q: Is Modern Steels Ltd a good buy now?

Modern Steels 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 Steels Ltd?

Modern Steels Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q: Gross Profit margin of Modern Steels Ltd?

Modern Steels Ltd Gross profit margin which is the profit after deduction of direct costs, is 78.1% for FY-2025, which is above its 5-year median of -6.4%, indicating increasing margins.

Q: Operating Profit Margin of Modern Steels Ltd?

Modern Steels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -6.57% indicating increasing margins.

Q: Net Profit Margin of Modern Steels Ltd?

Modern Steels Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -8.04%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 78.1, Historic Median: -6.4. Operating Profit Margin (%), Current: -, Historic Median: -6.57. Net Profit Margin (%), Current: -, Historic Median: -8.04

Q: Return on Asset of Modern Steels Ltd?

Modern Steels Ltd Return on Asset is 27.14%, which is in line with its 5-year historical median of 27.14%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Modern Steels Ltd?

Modern Steels Ltd Return on capital employed is 28.07% for FY-2025, which is above its 5-year historical median of 4.17%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Modern Steels Ltd

Snapshot

Q.1 Which industry/sub-sector does Modern Steels Ltd belong to?

Modern Steels Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Modern Steels Ltd a good quality company?

Modern Steels 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 Steels Ltd undervalued or overvalued?

Modern Steels 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	3.74	1.90
Price to Book	1.05	1.40
Price to Sales	-	-
EV to EBITDA	3.76	3.75

Q.4 Is Modern Steels Ltd a good buy now?

Modern Steels 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 Steels Ltd?

Modern Steels Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Gross Profit margin of Modern Steels Ltd?

Modern Steels Ltd Gross profit margin which is the profit after deduction of direct costs, is 78.1% for FY-2025, which is above its 5-year median of -6.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Modern Steels Ltd?

Modern Steels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -6.57% indicating increasing margins.

Q.4 Net Profit Margin of Modern Steels Ltd?

Modern Steels Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -8.04%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	78.1	-6.4
Operating Profit Margin (%)	-	-6.57
Net Profit Margin (%)	-	-8.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Modern Steels Ltd?

Modern Steels Ltd Return on Asset is 27.14%, which is in line with its 5-year historical median of 27.14%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Modern Steels Ltd?

Modern Steels Ltd Return on capital employed is 28.07% for FY-2025, which is above its 5-year historical median of 4.17%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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

Q.7 Debt to Equity ratio of Modern Steels Ltd?

Modern Steels Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Modern Steels Ltd?

Modern Steels Ltd Debt to cash flow from operations is 0.06, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Modern Steels Ltd?

Q.1 Promoter shareholding and pledge status of Modern Steels Ltd?

Promoters hold 65.53% of the Modern Steels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Modern Steels Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Modern Steels Ltd vs industry peers?

Modern Steels Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 7.56%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	7.6
Gross Profit Growth (%)	665.5	19.2
Operating Profit Growth (%)	0	13.8
Net Profit Growth (%)	665.5	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	-	1.27
ROE (%)	-	8.04
ROCE (%)	28.07	11.28
Cash Conversion Cycle (days)	-	72

Valuation & price assessment

Q.1 Stock return of Modern Steels Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	8.3%	28.1%	-7.1%	-10.7%

Q.2 Valuation ratios of Modern Steels Ltd vs historical?

The current P/E ratio of 3.74 is higher than its historical median of 1.90, 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	3.74	1.90	17.36
Price to Book	1.05	1.40	1.63
Price to Sales	-	-	0.74
EV to EBITDA	3.76	3.75	10.05

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Check Before You Invest : Modern Steels 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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