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Modern India Ltd Stock Analysis

Small Cap
Evaluated by 73 users | BSE: 503015 | NSE: |
Trading
Modern India ltd.(MIL) was founded by a British gentleman by the name of Gordon and was called 'The Gordon Mills'. Gordon Mills survived the severe hardships and heavy tax structure of the British Empire with the help of its dedicated owners, employees and shareholders. Gordon Mills was...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 2.7%9.03%9.67%5.34%-5.91%-9.78%2.02%-1.17%-0.38%-31.15%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 13429744815355.980.556.972.476.644.7
Y-o-Y Gr. Rt.-121.3%51%-66%-63.3%44%-29.3%27.1%5.8%-41.7%
Adjusted EPS (Rs.) -0.261.181.60.68-1.53-2.48-0.89-2.21-1.53-4.17
Y-o-Y Gr. Rt.-NA35.6%-57.5%-325%NANANANANA
Book Value per Share (Rs.) 12.5712.1712.9113.412.5512.2311.337.325.54-0.49
Adjusted Net Profit -14.462.6-5.7-9.3-3.3-8.3-5.7-15.7
Net Op. Cash Flow (Rs. Cr.) 37.7-29.17.232.2-4.6-14.63.674.1-15.1-13.9
Debt to Cash Flow from Ops 0.86-0.965.540.45-6.69-0.782.290.08-0.43-1.04
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Modern India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -11.5%-4.4%-7.8%-41.7%
Adjusted EPS NANANANA
Book Value per Share -169.7-152.3-135.1-108.8
Share Price 2.6% 0.8% -0.2% 12.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -2.149.5212.755.18-11.77-20-7.53-23.71-23.73-165.16
Operating Profit Margin (%) -1.391.391.1-0.29-15.56-8.45-9.4-17.43-15.38-29.77
Net Profit Margin (%) -0.731.491.341.68-10.25-11.55-5.85-11.47-7.48-35.09
Debt to Equity 0.690.610.820.290.650.250.190.220.31-7.85
Working Capital Days 26312189202368236303237268461
Cash Conversion Cycle 101604691193141202148139279
Entity Percentage Holding
Promoters 75.00%
Institutions 16.85%
Non-Institutions 8.15%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Modern India Ltd's performance infers:

Modern India Ltd earnings have grown by 0%, whereas share price has appreciated 0.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Modern India Ltd share prices over the last 10 years. Here is what we found out:

Modern India Ltd share price has appreciated -5.7% annually over the past ten years.

Modern India ltd.(MIL) was founded by a British gentleman by the name of Gordon and was called 'The Gordon Mills'. Gordon Mills survived the severe hardships and heavy tax structure of the British Empire with the help of its dedicated owners, employees and shareholders. Gordon Mills was officially incorporated into the Indian Companies Act on October 24, 1933 as 'Modern Mills Ltd”. (MML) under ownership of the Sirur family.

Over years Modern Mills Ltd. became one of the reputed

Modern India ltd.(MIL) was founded by a British gentleman by the name of Gordon and was called 'The Gordon Mills'. Gordon Mills survived the severe hardships and heavy tax structure of the British Empire with the help of its dedicated owners, employees and shareholders. Gordon Mills was officially incorporated into the Indian Companies Act on October 24, 1933 as 'Modern Mills Ltd”. (MML) under ownership of the Sirur family.

Over years Modern Mills Ltd. became one of the reputed business houses in the Indian textile industry. With the mill workers strike in the 1990s MML went into a deep financial burden and had to shut down production facilities and went under the BIFR scheme. MML was later taken over by the Jatia family in the early 1990s. The Jatia family infused fresh capital into MML and restarted production with upgraded facilities. Although the new management strived hard to revive MML's past glory, the financial unviability of operating a composite textile mill in the heart of Mumbai with high labour, electricity, water costs and a heavier tax structure, MML was forced to close down its manufacturing unit in the year 2004. MML at the time of closing was one of the last textile mills still functioning in Mumbai.

After shutting down its manufacturing facility, MML changed its identity, renaming itself to 'Modern India Ltd' (MIL). With changes in the government policy, MIL started to focus on other areas of business and today operates a real estate company, which has developed MIL's land bank in Mahalaxmi, Mumbai and is looking at new development projects. At the same time MIL has also started a technical training Institute called the 'Indian Institute of Jewellery' (IIJ), MIL is also a master distributor of GemVision Corporation, USA, having exclusive rights to distribute all GemVision products in India.

Modern India Property Developers Limited, a subsidiary company of Modern India Limited is developing an electronic hardware, software including IT & ITeS special economic zone at Khopoli in land admeasuring 36.89 acres, for which formal approval is received & notification application is filed with designated Development Commissioner. This SEZ would have state of art amenities and integrated development consisting of place of work, residence and leisure. This project is expected to be fully operational by March 2011.

Modern’s overseas division, Modern International Asia Ltd (MIAL) also delivers customized solutions for other products. MIAL has forayed into the trade of lights, luggage, paper, chemicals, textiles, rubber tyres and steel. The aim for MIAL is to become a completely integrated trading firm covering all aspects related to trade, right from placing the order to delivery of goods to your doorstep. At MIAL, we believe that world trade would soon be dominated by BRIC nations, MIAL’s endeavor is to provide quality products from these nations to the rest of the world.

Business area of the company:

  • Real Estate- MIL has a real estate & infrastructure development division which has developed 3.68 lakh sq. ft. of prime property in Mumbai. Projects include a 40 storey residential tower called Belvedere Court and a business center called Modern Center. At present MIL has a total land bank of 18.94 lakh sq. ft. in Mumbai and its surrounding areas of which the company is planning to develop 14.75 lakh sq ft. of property from its land bank.
  • Jewellery- Modern India Ltd. entered the field of professional education by collaborating with the California Institute of Jewellery Training and launched the Indian Institute of Jewellery(IIJ) as its Promoter and Infrastructure Developer. MIL entered into an agreement with Gemvision for the supply of their Gem vision's Revo 540 Milling Machine, SystemSix Camera System and Matrix & Digital Software. MIL is also marketing in the Indian market.
  • Textile- In order to meet its clients needs, MIL has set up an overseas subsidiary vis a vis “Modern International Asia Ltd” (MIAL) which has its base in Hong Kong. MIAL out-sources its requirements from The Peoples Republic of China and Hong Kong. This is purely a B2B segment activity, where MIAL delivers fully customized solutions as per the needs of their clients.

Subsidiaries: The wholly owned subsidiary of Modern India Limited are-

  • Modern India Property Developers Limited
  • Indian Institute of Jewellery Limited
  • Modern International (Asia) Limited

The associated companies of Modern India Limited are-

  • Shri Rani Sati Investment & Finance Limited
  • Modern Derivatives & Commodities Private Limited
  • Modern International Middle East FZC

Achievements/ recoganization

  • Modern India Limited is ranked amongst the India’s most investor friendly company by Business Today.
  • In 2008, Modern India Limited forayed into free trade warehousing by acquiring upto 300 acres of land in Panvel.
  • In 2008, the company planned to establish a five-star hotel in Udaipur and a special economic zone (SEZ) in other parts of the Rajasthan by investing about Rs.2000 crore.
  • The company is planning to acquire a textile mill in Gujrat or Tamil Nadu.

Recent developments

Modern India has announced that Garware Institute of Career Education and Development, a division of the University of Mumbai, in technical collaboration with the company’s wholly owned subsidiary, Indian Institute of Jewellery Ltd. will offer Post Graduate Diploma Program in Gems and Jewellery from the month of August, 2009.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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