20% Upper Circuit: Stock Skyrockets After Reporting 278% YoY Growth in Net Profit

Synopsis: Modison Ltd shares hit the 20% upper circuit after its Q4 results. Revenue rose 120.8% YoY to ₹287 Crores, while net profit jumped 277.7% YoY to ₹36 Crores. The earnings per share (EPS) for the quarterly period stood at ₹11.09.

The shares of a Micro-Cap company specialising in the manufacturing of high-quality silver electrical contact materials, finished contacts, and precious metal compounds, are in focus as they have hit 20  percent upper circuit following their Q4 results.

With a market capitalisation of Rs. 676.58 crores in the day’s trade, the shares of Modison Ltd hit a 20 percent upper circuit, making a high of Rs. 208.50 per share compared to its previous closing price of Rs. 173.75 per share.

What Happened

Modison Ltd, engaged in the manufacturing of high-quality silver electrical contact materials, finished contacts, and precious metal compounds, is in focus following their Q4 results as follows:

Its Revenue from operations increased by 120.8 percent YoY from Rs. 130 Crores in Q4FY25 to Rs. 287 Crores in Q4FY26, and increased by 99.3 percent QoQ from Rs. 144 Crores in Q3FY26 to Rs. 287 Crores in Q4FY26.

Its Net Profit increased by 277.7 percent YoY from Rs. 9.53 Crores in Q4FY25 to Rs. 36.0 Crores in Q4FY26, and on a QoQ basis, it increased by 79.1 percent from Rs. 20.1 Crores in Q3FY26 to Rs. 36.0 Crores in Q4FY26.

The earnings per share (EPS) for the quarterly period stood at Rs. 11.09, compared to Rs. 2.94 in the previous year’s quarter. The company has also recommended a Final Dividend of Rs. 3.00/- per Equity Share of the face value of Rs. 1/- each (i.e.@300%) for the financial year ended March 31, 2026.

Company Overview & Others

Modison Ltd is an Indian company primarily engaged in the manufacturing of electrical contact materials and components. It serves critical applications in the electrical industry, especially in switchgear, circuit breakers, and other power distribution equipment where high-performance contact materials are essential.

The company has a strong presence in the precious and non-precious metal contact segment, producing products like silver and silver-alloy contacts. These are widely used in industrial, commercial, and utility electrical systems, making the business closely linked to infrastructure and power sector demand.

Modison Ltd has over 50 years of industry experience, establishing itself as a long-standing player in electrical contact manufacturing. The company serves 150+ customers and has a strong global footprint, exporting to more than 20 countries worldwide. It also operates with a significant production scale, having a manufacturing capacity of around 2,000 tonnes per annum, which supports its ability to meet both domestic and international demand efficiently.

The company shows strong profitability metrics with a ROCE of 30.9% and ROE of 32.0%, indicating efficient capital use and high returns for shareholders. Its Debt-to-Equity ratio of 0.64 suggests moderate leverage, meaning the company is using some debt but still maintains a relatively stable balance sheet.

From a valuation perspective, the stock appears significantly undervalued with a P/E of 8.63 compared to the industry P/E of 27.3, along with a very low PEG ratio of 0.10, which indicates strong growth relative to its price. Additionally, the company has delivered a healthy 25.9% CAGR profit growth over the last 5 years, reflecting consistent earnings expansion.

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