Modulex Construction Technologies Limited

Industrials — Engineering & Construction · BSE

₹13.99+₹0.12 (+0.87%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Modulex Construction Technologies Limited engages in production, building, supplying, fabricating, and manufacturing of modular steel buildings.

IndustryEngineering & Construction

SectorIndustrials

Employees10

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. 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 -4.0% 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 ROE14.1%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

36/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 35% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 4 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 4.57x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -6.8x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹15 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.6x to -6.8x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 39% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.32 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 35% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.57x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
2Interest cover stays above 3x✗ -6.8x
How much operating profit can fall before interest stops being comfortably covered.
3ROCE stays above 8%✗ -4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 10 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)
✗ 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

1 good · 3 neutral · 7 weak

Market Cap

₹147 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-4.23

Loss-making

Negative earnings per share — the business is losing money

ROE

-4.6%

Weak

Weak capital efficiency

ROCE

-4.0%

Weak

Low return on total capital employed

Debt/Equity

4.57x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-431.6%

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

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.32

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.2 / 15.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹7 Cr	-₹6 Cr	-₹5 Cr	-₹10 Cr	—
PAT (Net Profit)	-₹9 Cr	-₹7 Cr	₹4 Cr	-₹15 Cr	—
EPS	₹-1.76	₹-1.03	₹0.64	₹-2.13	—
ROE	-3.5%	-2.5%	1.5%	-4.6%	—
ROCE	-2.3%	-1.9%	2.5%	-4.0%	—
Total Debt	₹22 Cr	₹5 Cr	₹18 Cr	₹15 Cr	-13.5%
Free Cash Flow	-₹5 Cr	-₹10 Cr	-₹26 Cr	-₹27 Cr	—

🔴 ROE has fallen from -3.5% to -4.6% over 3 years (-1.1 pts).

🔴 ROCE has fallen from -2.3% to -4.0% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 13.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹353 Cr

Total Liabilities

₹35 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

29.5%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

Modulex Construction Technologies Share Price Near 52W Low

Univest, 16 Oct

Compare with

Equitymaster, 18 Oct

Modulex Construction Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Modulex AGM set for July 23, 2026 via video conferencing

scanx.trade, 29 Jun

Modulex Construction Technologies Ltd. Lower Circuit: Price and Key Data

Univest, 30 Sept

Prostarm Info Systems consolidated net profit rises 17.08% in the March 2026 quarter

Business Standard, 23 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingGrowth · Valuation

WeakBusiness Quality · Financial Health · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 3 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑