⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FORCEMOT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | FORCEMOT | Market Cap | 24,732 Cr. | Current Price | 18,780 ₹ | High / Low | 22,000 ₹ |
| Stock P/E | 30.2 | Book Value | 2,720 ₹ | Dividend Yield | 0.21 % | ROCE | 29.3 % |
| ROE | 20.2 % | Face Value | 10.0 ₹ | DMA 50 | 18,961 ₹ | DMA 200 | 16,131 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.32 % | PAT Qtr | 350 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 45.6 | MACD | 1.85 | Volume | 34,364 | Avg Vol 1Wk | 75,938 |
| Low price | 6,200 ₹ | High price | 22,000 ₹ | PEG Ratio | 0.27 | Debt to equity | 0.00 |
| 52w Index | 79.6 % | Qtr Profit Var | 148 % | EPS | 815 ₹ | Industry PE | 30.8 |
📊 Core Financials
- Revenue growth: Strong, PAT at 350 Cr vs 185 Cr in previous quarter, showing 148 % improvement.
- Profit margins: EPS at 815 ₹, reflecting robust profitability.
- Debt ratios: Excellent, debt-to-equity at 0.00 indicates zero leverage.
- Cash flows: Supported by strong profitability and debt-free balance sheet.
- Return metrics: ROCE 29.3 %, ROE 20.2 % — very healthy efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 30.2, in line with industry average (30.8), fairly valued.
- P/B ratio: Current Price / Book Value ≈ 6.9, moderately expensive relative to assets.
- PEG ratio: 0.27, attractive, suggests undervaluation relative to growth.
- Intrinsic value: Fairly valued, supported by strong earnings and growth outlook.
🏢 Business Model & Competitive Advantage
- Operates in automotive sector, specializing in commercial vehicles, tractors, and utility vehicles.
- Strong brand presence with diversified product portfolio.
- Competitive advantage through debt-free structure, robust profitability, and consistent growth.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 18,000–18,500 ₹ levels, close to DMA 50 support.
- Long-term holding: Favorable due to strong fundamentals, high ROE/ROCE, and growth potential; suitable for investors seeking exposure to commercial vehicle sector.
Positive
- Strong ROCE (29.3 %) and ROE (20.2 %).
- Debt-free balance sheet (Debt-to-equity 0.00).
- Quarterly PAT growth of 148 %.
- EPS at 815 ₹ reflects robust earnings.
- Institutional support: FII (+0.19 %) and DII (+0.32 %) holdings increased.
Limitation
- P/B ratio at 6.9 indicates expensive valuation relative to assets.
- Dividend yield at 0.21 % is low, limiting income returns.
- Stock trading slightly below DMA 50, showing cautious momentum.
Company Negative News
- Stock corrected from 52-week high of 22,000 ₹.
- Volume lower than average (34,364 vs 75,938), showing reduced trading activity.
Company Positive News
- Quarterly PAT surged significantly (350 Cr vs 185 Cr).
- Strong fundamentals with high ROE and ROCE.
- Debt-free balance sheet ensures financial stability.
Industry
- Automotive sector supported by demand in commercial vehicles and tractors.
- Industry PE at 30.8, close to FORCEMOT’s P/E, suggesting fair valuation.
Conclusion
- FORCEMOT demonstrates strong fundamentals with robust profitability, high efficiency, and zero debt.
- Valuation is fair compared to industry peers, with PEG ratio highlighting growth potential.
- Entry advisable near support levels; long-term holding recommended for investors seeking exposure to commercial vehicle growth with strong fundamentals.
Would you like me to also prepare a comparative HTML snapshot against peers like Ashok Leyland, Tata Motors, and Mahindra & Mahindra to highlight FORCEMOT’s relative valuation and strengths?