Modern Shares (509760)

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

Key Financials

Strengths

• Price is only 1.11 times book value, with book value at ₹46.15 per share offering some asset floor.
• Tiny market cap of ₹15 crore means the stock is close to its stated asset base.
• Current price of ₹51.07 is the top of the 52-week range, showing recent market interest.
• Latest quarterly net loss is negligible at ₹-0 crore, not a large cash burn.

Concerns

• Returns are very weak: ROE is 1.64% and ROCE is only 3.32%.
• Business is contracting: sales growth is -8.79% and profit growth is -400%.
• Piotroski F-score of 3/9 suggests poor financial health.
• Zero dividend yield and a P/E of 39.95 offer no income or growth justification.
• Promoter holding is not disclosed, leaving governance uncertainty.

AI Analysis

At ₹51.07, Modern Shares is not a compounder. Market cap is ₹15 crore, making it a micro-cap financial services company. The Graham starting point is book value: ₹46.15 per share. With price at 1.11 times book, there is some asset support. But earnings are almost absent. ROE is only 1.64%, ROCE only 3.32%. Latest quarter sales are ₹1 crore and net profit is ₹-0 crore. Reported sales growth is -8.79%, and profit growth is -400%. That is a deteriorating, value-destroying business. Is there a moat? The numbers say no. Piotroski F-score is just 3/9, indicating weak financial health. Dividend yield is zero, so shareholders receive no income while waiting. A P/E of 39.95 looks absurd for a company with shrinking sales and collapsing profits. Price is not always value; here the earnings multiple assumes growth, but the data show contraction. The only attraction is the asset base. At 1.11 times book, you are paying a small premium over stated net worth. If management can stabilise operations and earn even a decent return on ₹46.15 book value, there could be meaningful upside. But no dividend, negative profit growth, and low scores on profitability and financial strength make this speculative. It is an asset play, not an operating franchise. I would need a clear margin of safety, likely a discount to book, and evidence of returning profitability before investing. For now, it is a pass.

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