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Check Before You Invest : Modern Malleables Ltd

BSE: 517336 NSE: MODERNMAL ISIN: INE834C01028
  |   Sector:  Construction & Infrastructure   |   Industry:  Transmission Towers / Equipments

Snapshot

Q.1 Which industry/sub-sector does Modern Malleables Ltd belong to?
Modern Malleables Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Transmission Towers / Equipments segment.
Q.2 Is Modern Malleables Ltd a good quality company?
Modern Malleables 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 Modern Malleables Ltd undervalued or overvalued?
Modern Malleables 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 36.42 -
Price to Book 4.31 1.10
Price to Sales 6.29 0.22
EV to EBITDA 27.42 -30.11
Q.4 Is Modern Malleables Ltd a good buy now?
Modern Malleables 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 Malleables Ltd?
Modern Malleables Ltd revenue growth is -23.1% for FY-2025, which is below its 5-year CAGR of -10.91%, indicating slower growth.

Q.2 Gross Profit margin of Modern Malleables Ltd?
Modern Malleables Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.4% for FY-2025, which is in line with its 5-year median of 24.9%, indicating stable margins.

Q.3 Operating Profit Margin of Modern Malleables Ltd?
Modern Malleables Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.62% for FY-2025, which is below its 5-year median of 21.19% indicating decreasing margins.

Q.4 Net Profit Margin of Modern Malleables Ltd?
Modern Malleables Ltd Net Profit Margin is 19.16% for FY-2025, is in line with its 5-year median of 19.16%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 24.4 24.9
Operating Profit Margin (%) 1.62 21.19
Net Profit Margin (%) 19.16 19.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Modern Malleables Ltd?
Modern Malleables Ltd Return on Asset is 5.14%, which is below its 5-year historical median of 7.35%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Modern Malleables Ltd?
Modern Malleables Ltd Return on capital employed is 7.91% for FY-2025, which is below its 5-year historical median of 12.53%. 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 Modern Malleables Ltd?
Modern Malleables Ltd Return on equity is 6.54% for FY-2025, which is below its 5-year historical median of 9.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Modern Malleables Ltd?
Modern Malleables Ltd Cash conversion cycle is 153 days, above its 5-year historical median of -2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.27 0.4
ROE (%) 6.54 9.43
ROCE (%) 7.91 12.53
Cash Conversion Cycle 153 days -2 days

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

Q.9 Debt to Equity ratio of Modern Malleables Ltd?
Modern Malleables Ltd Debt-to-Equity ratio is 0.03, which is above the industry average of 0.00, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Modern Malleables Ltd?
Modern Malleables Ltd Debt to cash flow from operations is -0.38, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Modern Malleables Ltd?
Promoters hold 59.37% of the Modern Malleables Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Modern Malleables Ltd vs industry peers?
Modern Malleables Ltd revenue CAGR is -10.91%, compared to the industry median CAGR of -10.91%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -23.1 -10.9
Gross Profit Growth (%) -31.6 -19.7
Operating Profit Growth (%) -93.8 -51.7
Net Profit Growth (%) -28.6 -18.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.27 0.1
ROE (%) 6.54 -
ROCE (%) 7.91 -
Cash Conversion Cycle (days) 152.52 1579

Valuation & price assessment

Q.1 Stock return of Modern Malleables Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Modern Malleables Ltd vs historical?
The current P/E ratio of 36.42 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 36.42 - 38.09
Price to Book 4.31 1.10 1.10
Price to Sales 6.29 0.22 4.87
EV to EBITDA 27.42 -30.11 -30.11

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