Modison Ltd. has repeatedly locked at exchange-imposed upper circuits as Q1 FY27 net profit jumped 604% year-on-year. The thinly traded stock climbed from below ₹200 to above ₹450 on sustained unfilled demand.
Modison is a small capital goods company making silver-cadmium oxide and copper-chromium electrical contacts. It claims roughly 80% share in India’s high-voltage contacts and around 30% in low-voltage contacts, supplying ABB, Siemens, Schneider Electric, Eaton and BHEL.
Promoters hold 52.23%, retail investors hold 46.85%, DIIs 0.00%, and FIIs just 0.92%. When buying meets scarce sellers, circuit filters can freeze trading, leaving unfilled buy queues.
Q4 FY26 revenue hit ₹287.32 crore, up 120.8% year-on-year from ₹130 crore. Net profit rose 277.7% to ₹36.00 crore. Q1 FY27 revenue came in at ₹270.47 crore, up 101.6%.
Silver is about two-thirds of raw material cost and once caused sharp profit swings. Modison now fixes or passes through silver prices with clients, helping EBITDA margin climb from 6.38% in Q1 FY26 to 18.52% in Q1 FY27.
PGCIL raised FY26 capex guidance to ₹35,000 crore and had already spent ₹35,540 crore by late March. FY27 and FY28 are projected at ₹37,000 crore and ₹45,000 crore, driving demand for switchgear contacts.
Q1 FY27 net profit hit ₹33.84 crore, up from ₹4.80 crore a year earlier. That 604% leap is the defining number behind the stock's upper circuits.
The report argues this is a repricing of a highly profitable niche manufacturer: ROE of 29.57%–32.0%, ROCE of 28.76%–31.0%, and a PEG ratio of 0.07–0.10, far below 1.0.
Top five customers account for 40–45% of income. Working capital tied up in silver is heavy, and the same thin order book that drives upper circuits can trap investors in lower circuits if sentiment reverses.
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