FORCEMOT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | FORCEMOT | Market Cap | 26,226 Cr. | Current Price | 19,904 ₹ | High / Low | 26,486 ₹ |
| Stock P/E | 24.8 | Book Value | 3,236 ₹ | Dividend Yield | 0.20 % | ROCE | 35.4 % |
| ROE | 28.7 % | Face Value | 10.0 ₹ | DMA 50 | 21,325 ₹ | DMA 200 | 18,706 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | -0.05 % | PAT Qtr | 274 Cr. | PAT Prev Qtr | 252 Cr. |
| RSI | 40.9 | MACD | -307 | Volume | 2,79,496 | Avg Vol 1Wk | 1,81,347 |
| Low price | 8,892 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.00 |
| 52w Index | 62.6 % | Qtr Profit Var | 57.4 % | EPS | 919 ₹ | Industry PE | 27.3 |
Financials & Valuation:
FORCEMOT demonstrates strong fundamentals. ROCE (35.4%) and ROE (28.7%) highlight excellent efficiency. EPS of 919 ₹ supports robust profitability, with quarterly PAT rising to 274 Cr. from 252 Cr., showing healthy growth. Debt-to-equity is 0.00, reflecting a debt-free balance sheet.
Valuation Indicators:
P/E ratio of 24.8 is slightly below the industry average (27.3), suggesting fair valuation. Book Value of 3,236 ₹ compared to current price of 19,904 ₹ shows premium pricing, justified by strong returns. PEG ratio of 0.13 indicates undervaluation relative to growth. Dividend yield of 0.20% is modest, offering limited income support.
Business Model & Health:
FORCEMOT, a leading automotive manufacturer, benefits from strong demand in commercial vehicles and exports. High profitability, debt-free status, and rising FII holdings (+0.47%) reinforce overall health, though DII holdings declined slightly (-0.05%).
Entry Zone & Holding Guidance:
Technically, support lies around 19,500–20,000 ₹, with resistance near 21,200–21,500 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals, sector demand, and undervaluation signals.
Positive
- Strong ROCE (35.4%) and ROE (28.7%).
- EPS of 919 ₹ supports profitability.
- Debt-free balance sheet (0.00 debt-to-equity).
- PEG ratio (0.13) indicates undervaluation.
- FII holdings increased (+0.47%).
Limitation
- Dividend yield remains modest at 0.20%.
- DII holdings declined (-0.05%).
- RSI (40.9) and MACD (-307) show weak momentum.
- Current price below 50 DMA (21,325 ₹), indicating short-term weakness.
Company Negative News
- Decline in DII holdings.
- Weak technical indicators suggest short-term pressure.
Company Positive News
- Quarterly PAT improved to 274 Cr. from 252 Cr.
- FII holdings increased, reflecting foreign investor confidence.
- Strong demand outlook in commercial vehicles.
Industry
- Automotive sector benefits from rising demand in exports and infrastructure growth.
- Industry PE (27.3) is slightly higher than FORCEMOT’s, supporting fair valuation.
- Long-term growth supported by commercial vehicle demand and global expansion.
Conclusion
FORCEMOT is fundamentally strong with excellent profitability, debt-free status, and undervaluation signals. Entry near 19,500–20,000 ₹ offers a favorable setup. Long-term investors can hold with confidence, while monitoring short-term technical weakness and institutional sentiment.
Would you like me to extend this into a 5-year performance overlay comparing FORCEMOT’s ROE, ROCE, and EPS growth against peers like Ashok Leyland, Tata Motors, and Eicher Motors?