Modi Rubber Limited (MODIRUBBER) AI Stock Analysis

• Market Cap: ₹2.85B
• Dividend Yield: N/A
• Average Volume (3M): 2.47K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.15
• Revenue Growth: 31.62%
• EPS Growth: -23.04%
• Country: IN
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 25,040,531
• 10 Day Avg. Volume: 5,116
• 30 Day Avg. Volume: 2,466
• PEG Ratio: 0.39
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 67.27
• P/FCF Ratio: -8.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹132.00 ▼(-13.47% Downside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is driven primarily by mixed financial performance: balance sheet strength is offset by declining revenue, negative operating margins, and persistently negative operating/free cash flow. Technicals add pressure as the stock trades below key moving averages with subdued momentum. Valuation is neutral-to-slightly supportive at a mid-range P/E, but lack of dividend data limits upside from income factors.

Positive Factors

Balance Sheet Strength

A very high equity ratio and low debt imply durable financial stability and low leverage. Over the next 2-6 months this reduces refinancing and solvency risk, gives the company optionality to fund restructuring or capex internally, and supports resilience through cyclical industry volatility.

EBITDA Cash Generation

Positive EBITDA indicates the underlying business can generate cash before non-cash and financing items, providing a structural cushion. Even if operating margins are weak, EBITDA positive status supports debt servicing capacity, underpins working capital needs, and can enable a measured operational turnaround.

Investing Cash Inflows

Sustained positive investing cash flow demonstrates the firm's ability to monetize non-core assets or realize investment proceeds. This structural source of liquidity can be redeployed to shore up operations or reduce short-term funding gaps, improving cash flexibility over the medium term.

Negative Factors

Negative Operating Cash Flow

Persistently negative operating cash flow is a durable impairment to financial health: it limits reinvestment, forces reliance on asset sales or external financing, and undermines the company's ability to sustain operations without structural changes to margins or working capital management.

Declining Revenue

A multiyear revenue decline erodes scale and pricing power, weakens operating leverage, and makes fixed-cost absorption more difficult. Without a credible revenue recovery, margin improvement and sustainable profitability will be challenging over the next several quarters.

Negative Gross and EBIT Margins

Negative gross and EBIT margins indicate the core business is loss-making at the operational level. This structural unprofitability means reported net income likely depends on non-operating items; long-term recovery will require substantive cost reduction or revenue reengineering to restore sustainable margins.

Modi Rubber Limited Business Overview & Revenue Model

Company Description

Modi Rubber Limited, together with its subsidiaries, provides automobile tires, tubes, and flaps in India. The company also manufacture and sell resin coated sand; and operates salons. Modi Rubber Limited was incorporated in 1971 and is headquartered in New Delhi, India.

How the Company Makes Money

Modi Rubber Limited generates revenue through the manufacturing and sale of rubber products tailored for specific industry applications. The company's key revenue streams include the production of rubber components for automobile manufacturers, which constitutes a significant portion of its sales. Additionally, MODIRUBBER capitalizes on contracts with industrial clients for custom rubber solutions, enhancing its revenue from B2B sales. The company also benefits from strategic partnerships with automotive OEMs and suppliers, which not only provide a steady stream of orders but also facilitate entry into new markets. Furthermore, MODIRUBBER's focus on innovation and quality allows it to command premium pricing for its products, contributing to its overall profitability.

Modi Rubber Limited Financial Statement Overview

Summary

Mixed fundamentals: a strong equity base and low leverage support stability, but revenue has declined (2023 to 2025), operating margins are negative (gross profit and EBIT), and operating/free cash flow are consistently negative, indicating weak operating quality despite positive net income.

Income Statement

Modi Rubber Limited has seen inconsistent revenue growth, with a decline in total revenue from 53.236 million in 2023 to 37.91 million in 2025. Despite this, the company managed to achieve a positive net income in the latest period, largely due to non-operational factors. The gross profit margin has been negative recently, indicating costs exceeding revenues, which is a concern. The EBIT margin remains negative, showing operational inefficiencies. However, a positive EBITDA margin suggests some level of cash flow generation capability before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a strong equity base with a high equity ratio of approximately 89% in 2025, indicating financial stability and less reliance on debt financing. The debt-to-equity ratio is low, which suggests sound leverage management. However, the return on equity (ROE) is relatively weak, reflecting inefficient use of equity to generate profits.

Cash Flow

Modi Rubber Limited exhibits volatility in cash flow metrics. The operating cash flow has been consistently negative, signaling potential challenges in covering operational costs through earnings. Free cash flow has also been negative, limiting reinvestment potential. On the positive side, the company has managed to maintain a positive investing cash flow, suggesting proceeds from asset sales or other investments. The free cash flow to net income ratio is unfavorable, highlighting issues in translating accounting profits to cash profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	322.62M	37.91M	224.37M	53.24M	51.27M	3.78M
Gross Profit	-60.66M	-486.00K	198.35M	24.66M	18.01M	-102.62M
EBITDA	203.50M	273.49M	325.38M	336.98M	303.56M	-43.93M
Net Income	167.92M	204.61M	155.28M	276.55M	256.31M	46.16M
Balance Sheet
Total Assets	7.74B	7.70B	7.44B	7.26B	6.86B	4.60B
Cash, Cash Equivalents and Short-Term Investments	783.00M	879.02M	915.39M	749.41M	820.60M	1.10B
Total Debt	194.76M	205.16M	207.57M	211.66M	45.97M	43.38M
Total Liabilities	812.47M	814.17M	881.06M	870.91M	670.87M	259.67M
Stockholders Equity	6.92B	6.88B	6.55B	6.38B	6.19B	4.34B
Cash Flow
Free Cash Flow	-259.93M	-308.19M	-258.20M	-276.87M	-296.33M	-64.08M
Operating Cash Flow	-258.13M	-289.17M	-223.49M	-181.25M	-246.43M	-58.59M
Investing Cash Flow	178.52M	359.77M	250.29M	244.72M	265.97M	15.50M
Financing Cash Flow	59.77M	-55.19M	-39.69M	-6.80M	-6.78M	-8.24M

Modi Rubber Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MODIRUBBER, the sentiment is Negative. The current price of 152.55 is above the 20-day moving average (MA) of 118.10, above the 50-day MA of 122.85, and above the 200-day MA of 121.07, indicating a bearish trend. The MACD of -3.33 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MODIRUBBER.

Modi Rubber Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	67 Neutral	₹1.06B	18.71	―	10.99%	-76.65%	-76.77%
SAHYADRI	65 Neutral	₹2.62B	14.07	―	0.40%	1.59%	-15.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MHLXMIRU	61 Neutral	₹1.92B	9.04	―	―	-26.45%	57.89%
MODIRUBBER	57 Neutral	₹2.85B	16.18	―	―	31.62%	-23.04%
NAGAFERT	48 Neutral	₹2.51B	-13.60	―	―	-100.00%	-101.18%