Modi's Navnirman (MODIS)

FairStock Score: 49/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 69.99% and profit growth of 82.17% show strong recent momentum.
• PEG ratio of 0.33 suggests the current P/E is reasonable relative to growth.
• ROE of 15.16% and ROCE of 12.88% indicate decent capital efficiency.
• Piotroski F-Score of 7/9 points to solid recent financial health.
• Promoter holding of 63.79% aligns management interests with minority shareholders.

Concerns

• Price-to-book of 8.69 against book value of ₹42.74 leaves very little margin of safety.
• Dividend yield is zero, so returns depend solely on price appreciation.
• Debt/Equity is not available, making leverage risk impossible to assess in a capital-heavy real estate business.
• P/E of 24.93 and FairStock Score of 53/100 suggest the stock is not compelling at current levels.

AI Analysis

Looking at Modi's Navnirman, I see a small real estate developer with an exciting growth story but a price that makes me pause. Sales grew 70% and profit grew 82% — numbers that turn heads. A PEG of 0.33 suggests the market is not fully paying for that growth. Return on equity of 15.16% and ROCE of 12.88% are acceptable, though not spectacular. The Piotroski score of 7/9 tells me recent financial health is decent, and promoter holding of 63.79% ensures skin in the game. But Graham taught me to weigh price against intrinsic value, and here the balance is uncomfortable. Book value is only ₹42.74 while the share price is ₹371.55 — a price-to-book of 8.69. That leaves almost no margin of safety. The P/E of 24.93 is not outrageous for a fast grower, but real estate is cyclical and project-driven; profits can disappear when demand cools. There is no dividend, so shareholder return depends entirely on price appreciation. More importantly, debt/equity is not disclosed. For a developer, leverage can separate survival from bankruptcy in a downturn. I cannot judge that risk, so I must treat it as a red flag. FairStock's mixed 53/100 reinforces my caution. This is a fast grower, but fast growers deserve scrutiny, not blind enthusiasm. If the company can keep executing and prove its balance sheet is sound, it could become interesting. At today's price, I would wait for a better entry point rather than chase momentum.

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