If by attracts enemies you mean nearby zombies will see/detect you better, the answer is most definitely yes. Just look at the stealth meter when holding a weapon/tool with burning shaft vs. putting it away.
However, I'm not sure whether the mod itself adds to heat meter, which when that reaches 100%, a screamer will spawn (similar to a torch hanging on the wall of your base or running forges/chem stations/etc.). If it does, I bet that amount is small and that it would only add to the heat generation while holding it.