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Modern Threads (India) Limited (MODTHREAD) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹1.8B

MT Modern Threads (India) Limited MODTHREAD · NSE
Price₹57.64
Fair Value₹59.55
Upside+3.3%
Quality52/100
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Weak Growth
Thin margins · 0.0% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/9)
Narrow moat 41/100
Evidence: Medium Range ₹42.48 – ₹74.43 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Fair value updated Aug 13, 2026, revised from ₹55.47 to ₹59.55 (+7.4%) since Aug 8, 2026. Share price +20.9% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ₹42.48 (bear) to ₹74.43 (bull), base ₹59.55. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 52/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (3 years)

₹73.90 ₹22.05 Fair Value ₹59.55 Feb 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

30‑month range ₹22.05 – ₹73.90 · fair‑value band ₹42.48 – ₹74.43 · the ₹57.64 price screens below the ₹59.55 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Modern Threads (India) Limited (MODTHREAD) currently trades at ₹57.64, while our model-based Fair Value estimate is ₹59.55, implying the stock looks roughly 3.3% fairly valued today. The Quality Score stands at 52/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Net debt stands at ₹279M. The stock trades on a trailing P/E of 16.4. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹42.48 (bear case) to ₹74.43 (bull case); at ₹57.64, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 62% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -7% fair-value upside, at 3%, MODTHREAD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹17.61 ₹19.82 ₹21.67 72
Growth-Adj P/E ₹42.48 ₹60.69 ₹78.90 68
P/E Multiple ₹57.83 ₹77.11 ₹96.39 63
All 14 models by family
DCF Models
Owner Earnings ₹10.63 ₹13.61 ₹17.20 31
Earnings-Based
Graham-Dodd ₹23.83 ₹50.72 ₹64.35 54
PEG = 1.0 ₹7.73 ₹11.04 ₹14.35 46
EPV ₹17.61 ₹19.82 ₹21.67 59
Multiples
P/E Multiple ₹57.83 ₹77.11 ₹96.39 63
P/S Multiple ₹44.69 ₹59.59 ₹74.48 58
P/B Multiple ₹44.69 ₹59.59 ₹74.48 55
EV/EBIT ₹36.05 ₹47.61 ₹59.17 53
EV/EBITDA ₹36.64 ₹48.40 ₹60.15 54
EV/Revenue ₹24.75 ₹34.77 ₹44.78 43
Asset-Based
NCAV (Graham) ₹20.91 ₹28.01 ₹41.81 50
Economic Profit
Residual Income ₹33.07 ₹34.85 ₹37.28 61
ROIC Compounder ₹17.61 ₹19.82 ₹21.67 72
Growth Earnings
Growth-Adj P/E ₹42.48 ₹60.69 ₹78.90 68

Widest divergence: Growth Earnings (₹60.69) versus DCF Models (₹13.61). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Free cash flow −₹159M FY2026
P/E ratio 16.4
EPS (TTM) ₹3.51
Net debt ₹279M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 50 · Market factors (momentum, volatility) 48

Profitability 50
Margins and returns on capital today
Quality Growth 72
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 3
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 67
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Modern Threads (India) Limited manufactures and sells wool and blended worsted yarn products in India. It offers merino raw white and dyed re-combed wool tops; polyester/wool blended dyed re-combed tops; specialty and worsted woolen yarns; lanolin; wool grease; synthetic yarn; and wool noil and spinning waste products.

Full company description

Modern Threads (India) Limited manufactures and sells wool and blended worsted yarn products in India. It offers merino raw white and dyed re-combed wool tops; polyester/wool blended dyed re-combed tops; specialty and worsted woolen yarns; lanolin; wool grease; synthetic yarn; and wool noil and spinning waste products. It also exports its products to Europe and the Middle East, as well as Latin American, the Far eastern, and African countries. Modern Threads (India) Limited was founded in 1973 and is based in Bhilwara, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Modern Threads (India) Limited reported revenue of ₹2.9B in FY2026 versus ₹2.2B in FY2022, a compound +7.7%/yr. Reported net income was ₹122M in FY2026, compounding +11.3%/yr from FY2022.

Growth Quality 25/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹2.9B
Latest YoY
+13.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.0%
Revenue +7.7%/yr
FY22 ₹2.2B
FY23 ₹3.0B
FY24 ₹3.0B
FY25 ₹2.6B
FY26 ₹2.9B
Net income +11.3%/yr
FY22 ₹79.4M
FY23 ₹2.1B
FY24 ₹254M
FY25 ₹33.7M
FY26 ₹122M

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Cite: Fair Value Calculator (2026). "Modern Threads (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/MODTHREAD

Peer Group

Textile Manufacturing · 317 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Above median
Fair Value upside +3% · Above median
Return on assets 0% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth 0% · Above median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 16.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 38 · sector 8
FUTURE 0 · sector 0
PAST 0 · sector 15
HEALTH 100 · sector 95
DIVIDEND 0 · sector 35

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$42.10 HK$68.24 +62%
Tongkun Group 601233 ¥22.67 ¥14.53 -36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.79 ¥14.35 +12%
Far Eastern New Century Corporation 1402 27.55 TWD 25.64 TWD -7%
K.P.R. Mill Limited KPRMILL ₹1,089 ₹467.49 -57%
HMT (Xiamen) New Technical Materials Co 603306 ¥71.55 ¥11.85 -83%
Vardhman Textiles Limited VTL ₹591.90 ₹437.53 -26%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%
Ruentex Industries Ltd 2915 54.10 TWD 133.24 TWD +146%
Welspun Living Limited WELSPUNLIV ₹165.23 ₹47.77 -71%

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Frequently asked questions

Is Modern Threads (India) Limited (MODTHREAD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹59.55 versus a price of ₹57.64, about +3% (fairly valued).
What is the fair value of MODTHREAD?
Our model-based fair value for Modern Threads (India) Limited is ₹59.55 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹57.64.
What is the quality score of MODTHREAD?
Modern Threads (India) Limited has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of MODTHREAD?
The net profit margin of Modern Threads (India) Limited is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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