Modi Rubber Limited

Real Estate — Real Estate Services · NSE

₹116.41−₹2.49 (−2.09%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Modi Rubber Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Modi Rubber Limited, together with its subsidiaries, manufactures and sells automobile tyres, tubes, and flaps in India. It also manufactures and sells resin coated sand. In addition, it operates salons.

IndustryReal Estate Services

SectorReal Estate

Employees15

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 15 employees supports ₹2.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.28 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +543% while net margin moved -100% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+543%

Margin effect-100%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.1% is weak
✗ ROE has fallen by 4.2 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

11641.0x

3Y Median

15.8x

40 monthly readings · mean 59.3x · range 6.5x–498.3x

Sector Median

30.2x

median of 3 sector peers

⚠️Current valuation is approximately 73465% above its 3y median of 15.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 38476% above the peer median of 30.2x.

vs. its own history

Expensive

15.8x median over 40 months · +73465%

vs. sector peers

Expensive

30.2x median of 3 peers · +38476%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

39.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 4.3% to 0.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 4.6% to 0.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.36x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 539.3 points, from 561.5% to 22.2%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 14.8x to 3.0x.
🟡Profit is decliningFinancial
Net profit is down 98% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 561.5% to 22.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.36x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 73465% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 4.3% to 0.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 64% a year✓ 86.0% CAGR
Latest reported year was 10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 3.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹291 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11641.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

0.1%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

3.36x

High

High leverage

Revenue Growth (YoY)

10.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-12.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-74.1%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

119.9 / 123.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹22 Cr	₹29 Cr	₹34 Cr	+86.0%
EBITDA	₹30 Cr	₹22 Cr	₹22 Cr	₹8 Cr	-36.6%
EBITDA Margin	561.5%	98.4%	76.9%	22.2%	—
PAT (Net Profit)	₹28 Cr	₹16 Cr	₹20 Cr	₹1 Cr	-71.5%
EPS	₹11.04	₹6.2	₹8.19	₹0.26	-71.3%
ROE	4.3%	2.4%	3.0%	0.1%	—
ROCE	4.6%	4.0%	3.2%	0.6%	—
Total Debt	₹21 Cr	₹21 Cr	₹21 Cr	₹23 Cr	+2.4%
Free Cash Flow	-₹28 Cr	-₹26 Cr	-₹31 Cr	-₹24 Cr	—

🟢 Revenue has grown at 86.0% a year over 3 years.

🔴 EBITDA has shrunk at 36.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 561.5% to 22.2% over 3 years (-539.3 pts).

🔴 PAT (Net Profit) has shrunk at 71.5% a year over 3 years.

🔴 EPS has shrunk at 71.3% a year over 3 years.

🔴 ROE has fallen from 4.3% to 0.1% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 4.6% to 0.6% over 3 years (-4.0 pts).

🔴 Total Debt has grown at 2.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹771 Cr

Total Liabilities

₹94 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.6%

Corporate Actions

Ex-Dividend Date

12 Jan 2000

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 mixed5 general

Little Excitement Around Modi Rubber Limited's (NSE:MODIRUBBER) Earnings

Simply Wall Street, 24 DecResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Modi Rubber Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

Modi Rubber Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Modi Rubber Ltd. Share Price Update: Fundamentals Check

Univest, 21 Aug

Modi Rubber Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

MODI RUBBER LTD Share Price

Upstox, 18 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑