Modulex Const. (504273)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Price ₹10.17 against book value ₹51.83 gives a P/B of 0.20, an 80% discount to stated book.
• Small market cap of ₹70 Cr leaves room for asset monetization or corporate action if value is unlocked.
• ROCE of 2.51% is positive while ROE is only -0.31%, indicating the asset base is not deeply impaired.
• Low expectations are already priced in, as the stock trades below its 52-week range.

Concerns

• Latest quarter shows sales of ₹0 Cr and a net loss of -₹4 Cr, meaning no active operating business.
• Profit growth of -116.75% reflects severe earnings deterioration.
• Piotroski F-score of 3/9 points to weak financial health and possible distress.
• Promoter holding is not disclosed, and the price below the 52-week low suggests governance or liquidity risks.

AI Analysis

At ₹10.17, Modulex Const. is a classic Graham-style asset situation on the surface. The books show ₹51.83 of book value per share, yet the market prices it at one-fifth of that — a P/B of 0.20 with a market cap of just ₹70 Cr. But I cannot value this on earnings because there are none. P/E is meaningless, latest quarter sales are ₹0 Cr and net profit is -₹4 Cr. Profit growth has collapsed by -116.75%. The ROE is -0.31%, and while ROCE is positive at 2.51%, that is far too thin to justify the capital base. The Piotroski F-score of 3/9 reinforces my caution: this is a weak financial situation, not a healthy operating business. When I buy an asset play, the margin of safety depends on whether the stated assets are real, liquid, and free of hidden liabilities. Here, the market is offering a huge discount, but I must ask why. Promoter holding is not disclosed, which is a red flag for minority shareholders. The stock trades below its 52-week low range of ₹15.55 to ₹30.43, pointing to distress, fear, or illiquidity. This is not a compounding machine; it is a potential monetization story. I would only consider it as a small, speculative asset play with eyes fully open on asset quality, legal clarity, and whether book value can actually be realized. Mr. Market says 20 paise per rupee of book, but every rupee of book is not necessarily worth a rupee in cash.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer