Modison Limited (MODISONLTD) AI Stock Analysis

• Market Cap: ₹4.29B
• Dividend Yield: 4.34%
• Average Volume (3M): 5.81K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.36
• Revenue Growth: 15.26%
• EPS Growth: 62.57%
• Country: IN
• Employees: 256
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): 6.18
• Shares Outstanding: 32,450,000
• 10 Day Avg. Volume: 3,652
• 30 Day Avg. Volume: 5,808
• PEG Ratio: 1.12
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -11.64
• 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: 65 Neutral
• Price Target: ₹139.00 ▼(-13.64% Downside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Modison Limited's overall stock score reflects strong financial performance with revenue growth and profitability improvements. However, liquidity concerns due to negative cash flow and increased leverage are significant risks. Technical indicators suggest a bearish trend, while valuation metrics indicate fair pricing with a reasonable dividend yield.

Positive Factors

Revenue Growth

A 21.4% year-over-year revenue increase indicates durable demand for Modison's electrical contact products and expanding customer adoption. Sustained top-line growth supports reinvestment in capacity, spreads fixed costs, and underpins longer-term profitability if maintained across business cycles.

Strong Equity Base and Improved ROE

An improved ROE alongside a high equity ratio signals efficient use of shareholders' capital without excessive dilution. A strong equity base provides a durable financial buffer, better credit standing and flexibility to fund capex or weather cyclicality without immediate refinancing pressure.

Specialized, Industrial Product Niche

Specialization in silver-based electrical contacts and engineered components creates technical barriers and steady industrial demand from OEMs. This niche positioning supports recurring B2B contracts, higher switching costs for customers and potential pricing power versus commodity suppliers over the medium term.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow means reported profits are not being converted into cash, creating reliance on external financing or asset sales to fund working capital and capex. Over months this can stress liquidity, increase financing costs and limit investment flexibility if not remedied.

Rising Leverage

A marked increase in debt-to-equity raises fixed interest obligations and reduces financial flexibility. Higher leverage amplifies downside risk during demand slowdowns, can constrain strategic investments and may necessitate deleveraging actions that pressure cash flow and operational plans over the medium term.

Low and Volatile Margins

A modest ~5% net margin with historical margin volatility limits the company's buffer against cost inflation or raw material swings (silver prices). Margin inconsistency makes earnings and free cash flow less predictable, complicating long-term planning, debt servicing and sustained investment in growth.

Modison Limited Business Overview & Revenue Model

Company Description

Modison Limited manufactures and sells electrical contacts for low, medium, and high voltage switchgear industries in India and internationally. The company provides electrical contacts for low voltage applications, including silver tin oxide, silver/steel/Ni/cupro nickel backed, solid/bimetal, silver tungsten and silver tungsten carbide contacts; silver cadmium oxide modurit; silver brazing alloys; fine silver-powder/granules; silver graphites; and silver inlays/edgelays/overlays/through lays/toplays in copper/brass. It also offers electrical contacts for medium and high voltage applications, such as dispersion strengthened copper, eutectic brazing alloys for vacuum, copper chromium discs, cast on plugs and segments, copper chromium zirconium contacts, copper tungsten, electron-beam welding, and brazed arcing contacts. In addition, the company provides precious metal compounds, including silver oxide, silver nitrate, and silver sulphate; silver cutlery; and silver bars and coins for gifts and investments. Further, it is involved in precious metals refining and recovery, silver melting and assaying, and silver plating services; and the research and development of contact materials for special applications, as well as provision of electron beam welding services. Additionally, the company offers copper chromium, copper chromium zirconium, copper zirconium, copper – HCP, copper – ETP, copper cadmium, copper berylium, copper nickel, copper tellurium, silicon bronze, and silver bearing copper. The company was formerly known as Modison Metals Limited and changed its name to Modison Limited in July 2022. Modison Limited was founded in 1965 and is headquartered in Mumbai, India.

How the Company Makes Money

Modison Limited generates revenue through the production and sale of electrical contact materials and related products. Its primary revenue streams include the sale of electrical contacts for various voltage applications, catering to industries that require reliable electrical conductivity and durability. The company may also engage in strategic partnerships and collaborations with other manufacturers and suppliers to enhance its product offerings and market reach. Additionally, Modison Limited's earnings are influenced by factors such as metal prices, technological advancements in electrical applications, and the overall demand for electrical equipment across different sectors.

Modison Limited Financial Statement Overview

Summary

Modison Limited shows strong revenue growth and profitability improvements. However, increased financial leverage and negative operating cash flow raise concerns about liquidity. The stable equity position supports financial health, but cash management and leverage need monitoring.

Income Statement

Modison Limited shows a healthy revenue growth trajectory with a 21.4% increase from 2024 to 2025. Gross profit margin is solid, although it slightly decreased from previous years. The net profit margin improved to about 5% in 2025, indicating better cost control. While EBIT and EBITDA margins are stable, they have seen fluctuations over the years, suggesting some volatility in operating efficiency.

Balance Sheet

The debt-to-equity ratio increased significantly, indicating higher leverage which could pose a risk if earnings do not grow. However, the return on equity improved to 11.4% in 2025, showing effective use of equity to generate profits. The equity ratio remains strong at about 67.8%, reflecting a solid financial foundation and asset management.

Cash Flow

Cash flow from operations turned negative in 2025, raising concerns about liquidity. The free cash flow has decreased substantially, suggesting more cash is being used for capital expenditures and financing activities. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.08B	4.90B	4.04B	3.35B	3.39B	2.91B
Gross Profit	974.97M	712.77M	815.79M	704.21M	664.24M	744.37M
EBITDA	535.56M	473.89M	381.81M	230.02M	283.86M	379.68M
Net Income	283.43M	246.81M	213.62M	111.77M	146.31M	224.38M
Balance Sheet
Total Assets	0.00	3.19B	2.71B	2.22B	2.14B	2.03B
Cash, Cash Equivalents and Short-Term Investments	4.17M	12.11M	8.09M	4.79M	43.20M	2.13M
Total Debt	0.00	727.65M	317.11M	50.02M	174.23M	115.59M
Total Liabilities	-2.17B	1.03B	678.35M	344.04M	384.08M	379.61M
Stockholders Equity	2.17B	2.17B	2.03B	1.87B	1.76B	1.65B
Cash Flow
Free Cash Flow	0.00	-367.27M	-197.32M	100.12M	17.85M	181.19M
Operating Cash Flow	0.00	-212.59M	-38.86M	224.92M	143.54M	238.26M
Investing Cash Flow	0.00	-88.71M	-154.01M	-125.76M	-109.07M	-38.48M
Financing Cash Flow	0.00	296.96M	193.77M	-137.56M	6.60M	-209.56M

Modison Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MODISONLTD, the sentiment is Negative. The current price of 160.95 is above the 20-day moving average (MA) of 144.37, above the 50-day MA of 148.56, and above the 200-day MA of 153.42, indicating a bearish trend. The MACD of -4.58 indicates Positive momentum. The RSI at 28.68 is Positive, neither overbought nor oversold. The STOCH value of 11.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MODISONLTD.

Modison Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTLCONV	73 Outperform	₹4.88B	4.73	―	0.81%	34.91%	-19.40%
NRAIL	67 Neutral	₹7.38B	14.28	―	0.41%	36.98%	-64.34%
MANAKSIA	67 Neutral	₹3.75B	7.26	―	―	51.38%	-19.06%
OCCL	67 Neutral	₹1.09B	18.71	―	10.99%	-76.65%	-76.77%
MODISONLTD	65 Neutral	₹4.29B	6.24	―	4.34%	15.26%	62.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHASTEEL	54 Neutral	₹12.47B	215.61	―	―	11.83%	124.74%

Modison Limited Corporate Events

Modison Limited to Close Trading Window Ahead of Q3 FY2025-26 Results

Modison Limited has announced that it will close its trading window for dealing in its shares from January 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s own code of conduct. The window will remain shut until 48 hours after the company declares its unaudited financial results for the quarter and nine months ended December 31, 2025, with the date of the relevant board meeting to be communicated later, signaling routine compliance measures to prevent insider trading around its upcoming earnings disclosure.