Modern Insulator (515008)

FairStock Score: 49/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 60.11% and profit growth of 161.43% show strong recent momentum.
• Latest quarter net profit of ₹24 Cr on ₹199 Cr sales implies a healthy ~12% margin.
• P/E of 17.40 and P/B of 1.56 are not excessive if growth continues.
• PEG of 0.16 suggests the market is pricing in very little future growth.
• Piotroski F-Score of 7/9 points to sound fundamentals and improving operations.

Concerns

• ROCE of only 8.90% indicates weak capital efficiency for a supposedly fast-growing business.
• Price has fallen sharply from its 52-week high of ₹431.75 to ₹147.80, signaling possible loss of investor confidence.
• Zero dividend means no income support; returns depend entirely on price appreciation.
• Debt/Equity and promoter holding are not disclosed, leaving ownership and leverage risks unclear.

AI Analysis

When I size up Modern Insulator, I don't get excited by one year's numbers alone. I ask whether this is a durable enterprise. The figures before me are certainly energetic: sales are up 60.11%, profit up 161.43%, and the latest quarter delivered ₹199 Cr in sales and ₹24 Cr in net profit. At ₹147.80, the market cap is ₹697 Cr, so the trailing P/E is 17.40 and the P/B is 1.56 against a book value of ₹94.48. With a PEG of 0.16, the market is paying very little for the reported growth. That is the bullish side. But a Graham buyer needs more. ROCE is only 8.90%; that is not a high-return moat business. ROE of 15.05% is respectable, but without the debt-to-equity figure I can't tell how much leverage is helping. And there is zero dividend, so all my return depends on the share price. The 52-week range, from ₹431.75 down to ₹98.60 and now ₹147.80, is a warning: the market has already rejected the stock once. FairStock's 47/100 mixed score and Piotroski 7/9 tell me operational health is okay but not exceptional. I can't call this a stalwart. It is a fast grower, but the low ROCE and absent promoter data keep me from treating it as a certainty. I want evidence of continuing orders, stable margins, and better capital returns. The low PEG makes me keep watching, but I will not jump in just because growth looks cheap. I need a durable moat or a wider margin of safety before I commit permanent capital. For now, this is a 'show me' candidate, not a conviction purchase. If the next few quarters confirm the trend, I'll happily revisit.

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