Company Overview

Modern Threads (India) Ltd was incorporated in August 1980 and commenced operations in January 1982 at its plant located in Raila, Bhilwara district, Rajasthan. It was jointly promoted by the Rajasthan State Industrial Development & Investment Corporation (RIICO) and H S Ranka for manufacturing industrial yarn and sewing thread. The company has since diversified into the manufacture of synthetic blended grey, dyed and fancy yarn. The Company is one of the biggest manufacturers and exporters of wool and blended worsted yarn from India.

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.

Business Operations and Facilities

The company operates through two main divisions strategically located in Rajasthan. Modern Woollens Division has a plant at Bhilwara, Rajasthan, as manufacturers and exporters of wool and blended worsted yarn from India. Modern Threads Division also has its plant at Raila, District Bhilwara, Rajasthan.

Over the years, the company has significantly expanded its production capabilities. The Company doubled the production capacity of all wool and wool blended worsted yarn in 2006. In 2014, about 1000 spindles were added with balanced preparatory machines to enhance yearly production capacity of worsted yarn from 1700 tons to 2100 tons. In a move towards sustainability, The Company started manufacturing & exporting RWS (Responsible Wool Standard) & GRS (Global Recycled Standard) products & supplying sustainable yarn in the global market in 2021.

Market Position and Financial Performance

Modern Threads (India) Ltd has a market capitalisation of ₹160 Cr as on 27-Jun-2025. As per Value Research classification, it is a Small Cap company. The company's financial journey has seen mixed results in recent years. For FY25, the company reported audited results with Rs.337L profit; however, there was a qualified audit opinion due to unpaid Rs.1047L preference dividend.

Recent quarterly performance has shown challenges, with net profit declining 97.58% to Rs 0.18 crore in the quarter ended June 2024 as against Rs 7.43 crore during the previous quarter ended June 2023. Sales declined 20.76% to Rs 58.05 crore in the quarter ended June 2024 as against Rs 73.26 crore during the previous quarter ended June 2023.

Key Financial Metrics

• Market Cap: ₹162.96 Cr (as of Jul 22, 2025)

• TTM Revenue: Rs. 267.20 Cr. (on a trailing 12-month basis)

• P/E Ratio: 48.31 (as of Jul 22, 2025)

• P/B Ratio: 0.81 (as of Jul 22, 2025)

• ROE: 19% (which is exceptional)

• FY25 Audited Profit: Rs.337L (with qualified opinion due to unpaid preference dividend of Rs.1047L)

• Q1 FY2024-25 Performance: Net Profit declined 97.58% to Rs 0.18 crore; Sales declined 20.76% to Rs 58.05 crore.

Management and Ownership Structure

The promoters of Modern Threads (India) Ltd are Generotrade Exim LLP and Arihant Beneficiary Trust through trustee Lalitha Ranka. They collectively own 65.1 per cent of the total equity. The chairman of the company is Rajesh Ranka. The auditor for Modern Threads (I) Ltd is S S Surana & Co. In the main management, Rajesh Ranka is chairman and Anil Kumar Jain is the company secretary.

Stock Performance and Valuation

The stock has experienced significant volatility over the past year. Over the past 6 months, the Modern Threads (I) share price has decreased by 1.35% and in the last one year, it has decreased by 27.85%. The 52-week low for Modern Threads (I) share price was Rs. 33.15 and 52-week high was Rs. 67.47.

The company's valuation metrics show mixed signals. The P/B ratio of Modern Threads (India) Ltd is 1.20 times as on 27-Jun-2025, a 19% premium to its peers' median range of 1.01 times. The P/E ratio of Modern Threads (India) Ltd is 47.35 times as on 27-Jun-2025, a 3% premium to its peers' median range of 46.01 times.

Recent Developments and Future Outlook

The company has shown commitment to sustainable practices and modern manufacturing standards. The company maintains a strong balance sheet with no debt, enabling it to report stable earnings growth across business cycles. However, the company has delivered a poor sales growth of 5.34% over past five years.

Modern Threads operates in the textile spinning sector, specifically in the synthetic and blended yarn segment, positioning itself as a key player in India's textile manufacturing ecosystem. The company's focus on sustainable yarn production and its established export network provide a foundation for future growth, despite recent operational challenges.