Modi Rubber Limited (MODIRUBBER) AI Stock Analysis

• Market Cap: ₹3.23B
• Dividend Yield: N/A
• Average Volume (3M): 2.47K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.11
• Revenue Growth: 31.62%
• EPS Growth: -23.04%
• Country: IN
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): 1.82
• 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: ₹133.00 ▼(-12.82% Downside)

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

Strong balance sheet / low leverage

An equity ratio near 89% and low debt levels provide durable financial stability, lowering default risk and preserving credit optionality. This balance-sheet strength gives management flexibility to fund restructuring, absorb shocks, or support targeted investments without immediate external financing.

Positive EBITDA margin

A positive EBITDA margin indicates the business can generate cash from core operations before non-cash charges and financing. Over months, this provides a foundation for operational adjustments or refinancing and shows underlying cash-generating capacity despite accounting-level net income volatility.

Positive investing cash flow (asset monetization)

Sustained positive investing cash flow implies management has monetized assets or investments to raise cash, creating a liquidity buffer. This provides strategic flexibility to shore up operations or reduce leverage and can be a durable bridge while operational improvements are implemented.

Negative Factors

Declining revenue trend

A sizable revenue decline over multiple years reduces scale and market presence, pressuring unit economics and fixed-cost absorption. Persisting top-line contraction constrains reinvestment, weakens bargaining power with customers/suppliers, and makes recovery more difficult without strategic change.

Negative gross and operating margins

Negative gross and EBIT margins show core operations are loss-making, not just below-the-line issues. Over time, this erodes retained earnings and requires structural fixes—cost reduction, pricing changes, or product mix shifts—otherwise profitability will remain unsustainable.

Consistently negative operating and free cash flow

Persistent negative operating and free cash flows indicate operations fail to generate sustainable cash, forcing reliance on asset sales or external funding. This undermines long-term investment, increases refinancing risk, and limits the company's ability to execute strategic initiatives without structural improvement.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	309.57M	37.91M	224.37M	53.24M	51.27M	3.78M
Gross Profit	-174.81M	-486.00K	198.35M	24.66M	18.01M	-102.62M
EBITDA	246.77M	273.49M	325.38M	336.98M	303.56M	-43.93M
Net Income	185.53M	204.61M	155.28M	276.55M	256.31M	46.16M
Balance Sheet
Total Assets	0.00	7.70B	7.44B	7.26B	6.86B	4.60B
Cash, Cash Equivalents and Short-Term Investments	879.02M	879.02M	915.39M	749.41M	820.60M	1.10B
Total Debt	0.00	205.16M	207.57M	211.66M	45.97M	43.38M
Total Liabilities	-6.89B	814.17M	881.06M	870.91M	670.87M	259.67M
Stockholders Equity	6.89B	6.88B	6.55B	6.38B	6.19B	4.34B
Cash Flow
Free Cash Flow	0.00	-308.19M	-258.20M	-276.87M	-296.33M	-64.08M
Operating Cash Flow	0.00	-289.17M	-223.49M	-181.25M	-246.43M	-58.59M
Investing Cash Flow	0.00	359.77M	250.29M	244.72M	265.97M	15.50M
Financing Cash Flow	0.00	-55.19M	-39.69M	-6.80M	-6.78M	-8.24M

Modi Rubber Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 152.55 is above the 20-day moving average (MA) of 120.36, above the 50-day MA of 119.96, and above the 200-day MA of 122.40, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MODIRUBBER.

Modi Rubber Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHLXMIRU	73 Outperform	₹2.07B	10.35	―	―	-26.45%	57.89%
OCCL	67 Neutral	₹1.25B	11.71	―	10.99%	-76.65%	-76.77%
SAHYADRI	65 Neutral	₹2.80B	15.11	―	0.40%	1.59%	-15.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MODIRUBBER	57 Neutral	₹3.23B	19.02	―	―	31.62%	-23.04%
NAGAFERT	48 Neutral	₹2.91B	-11.76	―	―	-100.00%	-101.18%