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 ₹467, in a confirmed uptrend and 46 weeks into that stage. That is +38.3% against its own 200-day average. It sits at 77% of a 52-week range of ₹115 to ₹572. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 56 straight weeks.

Today the stock is in a confirmed uptrend — week 46 of stage 2, confirmed. At ₹467 it trades +38.3% versus its 200-day average and sits at 77% of its 52-week range (₹115–₹572).

Against the market, two honest reads. Cumulative: over the last 6.1 years the stock moved +15,398% while the NIFTY 500 moved +169% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 56 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.

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 23.4× P/E, at the pricey end of its own range (94th percentile). Its long-run median P/E is 12.3×, measured across 6.0 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 23.4× is at the pricey end of its own range (94th percentile), against a long-run median of 12.3× measured over 6.0 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 +106.8% against a +351.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +53.1%/yr price move, ~+22.7%/yr came from earnings growth and ~+30.4 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.

Stage: Consistent 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 consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 19.0% and holding. The read is built from 9 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

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.

4-Factor Sector Score

69.0/100 — rank 2 of 19 in Capital Goods - Electric General · 82% evidence confidence

Modern Insulators Ltd scores 69.0 out of 100 against the 19 companies it is compared with in Capital Goods - Electric General, ranking 2. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 30.4 + 18.1 + 7 + 13.5 = 69. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

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

Modern Insulators Ltd reported ₹188 Cr of revenue in the Jun 26 quarter, +33.3% year on year. That is the 10th straight quarter of year-on-year growth. Over 10 years it has compounded at 4.6% a year. The last full year, FY26, came in at ₹720 Cr. The last four reported quarters add to ₹766 Cr.

FY26 revenue came in at ₹720 Cr (+43.1% on the year), capping 10 years at 4.6% compound. The latest quarter (Jun 26) printed ₹188 Cr, +33.3% year on year — the 10th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +43.1% growth against the decade's 4.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +41.6% over the last 4 quarters against +29.5%/yr over the last 8 — accelerating; TTM profit +106.5% vs +54.1%/yr — accelerating.

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 17.0% in the Jun 26 quarter, +8.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 5.0% to 13.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 17.0%, +8.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 5.0%–13.0%, and FY26's 13.0% is the top of that band — a record year.

Why the margin moved: operating margin went +7.8 pp year on year while gross margin went +8.5 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

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 ₹30.0 Cr of net profit in the Jun 26 quarter, +100.0% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹80.0 Cr. The 10-year compound rate is 10.7%. That is 16.0% of the quarter's revenue. The same quarter a year earlier earned ₹15.0 Cr.

Jun 26 profit was ₹30.0 Cr, +100.0% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹80.0 Cr (+105.1%), and the 10-year compound rate is 10.7%.

Why profit moved: revenue contributed +33.3% 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 +116.0% vs revenue +43.1%. 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.

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 64% of Modern Insulators Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹47.0 Cr of operating cash against ₹80.0 Cr of profit. After ₹16.0 Cr of capital spending, ₹31.0 Cr was left as free cash.

FY26: operating cash of ₹47.0 Cr against reported profit of ₹80.0 Cr, leaving free cash of ₹31.0 Cr after ₹16.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 64% 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 64%: the cash cycle tightened 39 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

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

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 266 days in FY26, down from 305 days in FY21. Capital spending ran ₹35.0 Cr over the last 3 years. At FY26 sales of ₹720 Cr each day of that cycle holds about ₹2.0 Cr, so roughly ₹525 Cr sits inside the business at any moment.

FY26: debtors at 77 days, inventory at 291 days — roughly 9.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 266 days, tighter than FY21's 305.

The full loop: cash goes out to suppliers and production on day 0; stock waits 291 days to sell; customers pay about 77 days after that; and suppliers themselves are paid at 102 days — netting out to the 266-day cycle.

In money terms: at FY26 sales of ₹720 Cr, each day of the cycle holds about ₹2.0 Cr — so the 266-day loop keeps roughly ₹525 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹35.0 Cr over the last 3 fiscal years against ₹28.0 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹1.0 Cr (FY26) — 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.

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 19% in FY26. 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 11.1% net margin on 0.94× asset turns.

FY26 ROCE is 19%, 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 (FY26): 11.1% net margin × 0.94× asset turns × 1.40× balance-sheet leverage ≈ 14.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

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 ₹68.0 Cr of borrowings against ₹543 Cr of equity in FY26, a debt-to-equity of 0.13. Operating profit covers the interest bill 16×. Over 5 years borrowings went from ₹24.0 Cr to ₹68.0 Cr. Capital spending ran ₹35.0 Cr across the last 3 of those years.

FY26: borrowings of ₹68.0 Cr against equity of ₹543 Cr — a debt-to-equity of 0.13. Operating profit covers the interest bill 16×. Over 5 years borrowings went from ₹24.0 Cr to ₹68.0 Cr while capital spending ran ₹35.0 Cr in just the last 3 — part of the build-out is riding on borrowed money.

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. Foreign institutions moved +0.1 points over the same window, to 0.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −0.3 points over 8 quarters to 1.1%; Foreign institutions: +0.1 points over 8 quarters to 0.4%; Promoters: +0.0 points over 8 quarters to 60.2%.

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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