Modi Naturals Ltd: Is It a Deep Value Opportunity?

Modi Naturals Ltd has a deep value score of 63/100 (rated Strong). This score is calculated from three components

• Earnings Score: 30/40 — measures PAT growth momentum across quarters
• Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 18/25 — operational quality (margins, revenue growth, valuation)

Modi Naturals Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +96%
• Previous Quarter PAT Growth (QoQ): 0%
• 2 Quarters Ago PAT Growth (QoQ): -4%
• PAT Acceleration: +50.0pp (profits are accelerating)
• 1 consecutive quarters of positive PAT growth

Modi Naturals Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -23%
• 6-Month Return vs Nifty 500: +17%
• 3-Month Return vs Nifty 500: +53%
• Yet average quarterly PAT growth is +31% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Modi Naturals Ltd's earnings momentum is Accelerating — profit growth is speeding up.

• PAT QoQ progression: -4% → 0% → +96% (2Q ago → 1Q ago → latest)
• Acceleration: +50.0pp
• PAT YoY Growth: +150%

Modi Naturals Ltd's valuation metrics

• Price-to-Earnings (PE): 11.4x
• Price-to-Book (PB): 3.4x
• PEG Ratio: 0.3x
• Margin of Safety: +312% (appears undervalued)

Modi Naturals Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +40%
• Average Quarterly Revenue Growth: +18%
• Revenue Acceleration: +22.4pp
• Latest OPM Change: +0.8pp (margins expanding)
• Average OPM Change: -0.4pp
• Revenue YoY: +28%

Modi Naturals Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹50 Cr
• TTM PAT Growth: +61.3% YoY
• TTM Revenue: ₹719 Cr
• TTM Revenue Growth: +8.3% YoY
• TTM Operating Margin: 10.0%

Modi Naturals Ltd key facts

• Sector: Edible Oils, Agro Processing
• Market Cap: ₹577 Cr
• Rank in Edible Oils, Agro Processing: #1 by value score
• Overall rank among all deep value stocks: #41

Modi Naturals Ltd shows strong deep value signals — good score (63/100), accelerating earnings, and significant underperformance vs Nifty.

• Value Score: 63/100 (Strong)
• Earnings: Accelerating
• 1Y Underperformance: -23% vs Nifty 500

Other deep value stocks in Edible Oils, Agro Processing

• AWL Agri Business Ltd — Score 50/100, Average, earnings accelerating

Edible Oils, Agro Processing deep value sector overview

• 2 deep value stocks in this sector
• Average value score: 57/100
• Avg PAT acceleration: +26.1pp
• Top pick: Modi Naturals Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.