Modern Insulators Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Modern Insulators Ltd trades at ₹238, in a confirmed uptrend and 23 weeks into that stage. That is +43.6% against its own 200-day average. It sits at 74% of a 52-week range of ₹88 to ₹290. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 27 straight weeks.

Today the stock is in a confirmed uptrend — week 23 of stage 2, confirmed. At ₹238 it trades +43.6% versus its 200-day average and sits at 74% of its 52-week range (₹88–₹290).

Against the market, two honest reads. Cumulative: over the last 5.7 years the stock moved +7,805% while the NIFTY 500 moved +156% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 27 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 95th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Modern Insulators Ltd trades at 17.5× P/E, at the pricey end of its own range (95th percentile). Its long-run median P/E is 11.0×, measured across 5.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 17.5× is at the pricey end of its own range (95th percentile), against a long-run median of 11.0× measured over 5.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +7.1% against a +129.3% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +38.8%/yr price move, ~+18.6%/yr came from earnings growth and ~+20.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Modern Insulators Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 3 quarters ago at −10.0% and has held its recovery at +166.7% (single-quarter readings), ROCE lifting at 9.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

No sector-relative score — Modern Insulators Ltd is not present in the sector comparison for Capital Goods - Electric General.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Modern Insulators Ltd reported ₹199 Cr of revenue in the Dec 25 quarter, +59.2% year on year. That is the 8th straight quarter of year-on-year growth. Over 11 years it has compounded at 0.8% a year. The last full year, FY25, came in at ₹503 Cr. The last four reported quarters add to ₹676 Cr.

Modern Insulators Ltd reported ₹199 Cr of revenue in the Dec 25 quarter, +59.2% year on year. That is the 8th straight quarter of year-on-year growth. Over 11 years it has compounded at 0.8% a year. The last full year, FY25, came in at ₹503 Cr. The last four reported quarters add to ₹676 Cr.

FY25 revenue came in at ₹503 Cr (+13.5% on the year), capping 11 years at 0.8% compound. The latest quarter (Dec 25) printed ₹199 Cr, +59.2% year on year — the 8th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +40.5% growth against the decade's 0.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +39.7% over the last 4 quarters against +26.0%/yr over the last 8 — accelerating; TTM profit +41.3% vs +42.5%/yr — stabilising.

→ Revenue grew — did margins hold as it scaled? Next: 16.0% this quarter (+8.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Modern Insulators Ltd's operating margin is 16.0% in the Dec 25 quarter, +8.0 percentage points against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged 5.0% to 10.0%. The current quarter is running above every full year in that window.

Modern Insulators Ltd's operating margin is 16.0% in the Dec 25 quarter, +8.0 percentage points against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged 5.0% to 10.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 16.0%, +8.0 pp against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged 5.0%–10.0%.

Why the margin moved: operating margin went +7.9 pp year on year while gross margin went −0.5 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit +166.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Modern Insulators Ltd earned ₹24.0 Cr of net profit in the Dec 25 quarter, +166.7% year on year. It is the 3rd consecutive quarter of growth. Full-year FY25 profit was ₹39.0 Cr. The 11-year compound rate is 9.8%. That is 12.1% of the quarter's revenue. The same quarter a year earlier earned ₹9.0 Cr.

Modern Insulators Ltd earned ₹24.0 Cr of net profit in the Dec 25 quarter, +166.7% year on year. It is the 3rd consecutive quarter of growth. Full-year FY25 profit was ₹39.0 Cr. The 11-year compound rate is 9.8%. That is 12.1% of the quarter's revenue. The same quarter a year earlier earned ₹9.0 Cr.

Dec 25 profit was ₹24.0 Cr, +166.7% year on year — the 3rd consecutive quarter of growth. On the full year, FY25 printed ₹39.0 Cr (+8.3%), and the 11-year compound rate is 9.8%.

Why profit moved: revenue contributed +59.2% and the margin +8.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +60.3% vs revenue +40.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 73% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 73% of Modern Insulators Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY25 that was ₹40.0 Cr of operating cash against ₹39.0 Cr of profit. After ₹17.0 Cr of capital spending, ₹23.0 Cr was left as free cash.

FY25: operating cash of ₹40.0 Cr against reported profit of ₹39.0 Cr, leaving free cash of ₹23.0 Cr after ₹17.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 73% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 73%: the cash cycle tightened 24 days between FY20 and FY25 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 314-day cycle and ₹25.0 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Modern Insulators Ltd's cash conversion cycle runs 314 days in FY25, down from 338 days in FY20. Capital spending ran ₹25.0 Cr over the last 3 years. At FY25 sales of ₹503 Cr each day of that cycle holds about ₹1.4 Cr, so roughly ₹433 Cr sits inside the business at any moment.

FY25: debtors at 88 days, inventory at 325 days — roughly 10.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 314 days, tighter than FY20's 338.

The full loop: cash goes out to suppliers and production on day 0; stock waits 325 days to sell; customers pay about 88 days after that; and suppliers themselves are paid at 99 days — netting out to the 314-day cycle.

In money terms: at FY25 sales of ₹503 Cr, each day of the cycle holds about ₹1.4 Cr — so the 314-day loop keeps roughly ₹433 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹25.0 Cr over the last 3 fiscal years against ₹27.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹1.0 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 9%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Modern Insulators Ltd earns a ROCE of 9% in FY25. That is up from a trough of 6% in FY22. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 7.8% net margin on 0.83× asset turns.

FY25 ROCE is 9%, recovered from a FY22 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): 7.8% net margin × 0.83× asset turns × 1.30× balance-sheet leverage ≈ 8.4% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.05.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Modern Insulators Ltd carries ₹25.0 Cr of borrowings against ₹463 Cr of equity in FY25, a debt-to-equity of 0.05. Operating profit covers the interest bill 9×. Over 5 years borrowings went from ₹101 Cr to ₹25.0 Cr. Capital spending ran ₹25.0 Cr across the last 3 of those years.

FY25: borrowings of ₹25.0 Cr against equity of ₹463 Cr — a debt-to-equity of 0.05. Operating profit covers the interest bill 9×. Over 5 years borrowings went from ₹101 Cr to ₹25.0 Cr while capital spending ran ₹25.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Modern Insulators Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 60.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −0.9 points over 8 quarters to 1.3%; Promoters: +0.0 points over 8 quarters to 60.2%; Foreign institutions: +0.0 points over 8 quarters to 0.3%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Modern Insulators Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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