Modison shares hit a day high of Rs 545 on 16 October but closed 5% lower at Rs 499.25 even as standalone Q2 profit doubled to Rs 23.3 crore.

Modison makes electrical contacts, small metal parts used inside switchgear. Switchgear is the equipment that switches power on and off and protects circuits from overload.

Demand for these parts tends to follow spending on power networks and factories. The company shared its July to September numbers on Friday after a board meeting.

Standalone profit, which covers only the parent company, came in at Rs 23.3 crore against Rs 11.7 crore a year ago. That is a rise of about 99%.

Sales did most of the work. Revenue climbed to Rs 280 crore from Rs 145 crore, a jump of about 93%.

Operating profit before interest, tax and depreciation, often called EBITDA, rose to Rs 32.1 crore from Rs 18.5 crore.

The margin slipped, though. Modison kept about Rs 11.50 of operating profit from every Rs 100 of sales, compared with Rs 12.72 a year earlier.

So the business grew, but each rupee of sales earned a little less. The April to June quarter had been solid too.

In August, the company reported consolidated profit of Rs 33.84 crore on sales of Rs 270.47 crore.

Consolidated figures include subsidiaries, so they cannot be set directly against the standalone Q2 numbers.

Shareholders also received a dividend of Rs 3 per share in July, with 14 July as the record date.

Now the share price. Modison opened at Rs 529.90 on Friday and touched Rs 545 during the day.

Then it slid. By the close the stock had fallen to Rs 499.25, the lowest price its 5% daily limit allowed.

That was down Rs 26.25, or 5.00%, from the previous close of Rs 525.50. At that level, the NSE order book showed only sellers, 2,518 shares in all, and no buyers.

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