Why 2,094 crore Modern Insulators remains in consolidated loss

Market pulse

From the investor's mind

When merchants receive more than Rs 2,000 in a single transaction via UPI, they pay a charge of Rs 400 per lakh received, representing a transaction cost of 0.40%. Deepak Shenoy points out that this fee does not go to the government or even the National Payments Corporation of India, but is instead split between the merchant's bank, the sender's bank, and two back-end players. This highlight underscores how a network of intermediaries continues to capture value from digital payments, showing that UPI transactions are not entirely free of cost for larger business transactions.

Word in the street

Modern Insulators Ltd

Investors are closely debating Modern Insulators Ltd, a company with a market cap of about 2,094 crore, as they analyze its true financial health. A key point of contention is why the business remains in a loss on consolidated terms. Some point to volatile raw material costs, which fluctuated between 300 crore and 525 crore over the last decade despite similar sales figures, sparking fears of being caught on the wrong cycle. However, others counter that consolidated numbers are misleading because of past conductor and speciality chemicals operations, urging a closer look at the margin profile of upcoming capacity additions instead.

Yesterday's big moves

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