FORCEMOT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | FORCEMOT | Market Cap | 26,177 Cr. | Current Price | 19,877 ₹ | 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 | 20,653 ₹ | DMA 200 | 18,866 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | -0.05 % | PAT Qtr | 274 Cr. | PAT Prev Qtr | 252 Cr. |
| RSI | 46.6 | MACD | -443 | Volume | 1,76,863 | Avg Vol 1Wk | 1,22,924 |
| Low price | 10,158 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.00 |
| 52w Index | 59.5 % | Qtr Profit Var | 57.4 % | EPS | 919 ₹ | Industry PE | 27.7 |
📊 Financials: FORCEMOT shows strong fundamentals. Quarterly PAT rose to 274 Cr from 252 Cr, reflecting earnings growth. ROCE at 35.4% and ROE at 28.7% highlight excellent efficiency and profitability. EPS is very strong at 919 ₹, supporting robust earnings. Debt-to-equity is 0.00, indicating a debt-free balance sheet and strong financial stability.
💰 Valuation: The stock trades at a P/E of 24.8, slightly below the industry average of 27.7, suggesting fair valuation. Book value is 3,236 ₹, with current price at 19,877 ₹, implying a P/B ratio of ~6.1. PEG ratio of 0.13 indicates valuation is attractive relative to growth. Intrinsic value appears aligned with current levels, suggesting upside potential.
🚙 Business Model & Health: FORCEMOT operates in automotive manufacturing, with strong presence in commercial vehicles, tractors, and utility vehicles. Competitive advantage lies in diversified product offerings, brand strength, and innovation. Overall health is excellent, supported by profitability, zero debt, and institutional support.
📈 Entry Zone: RSI at 46.6 indicates neutral momentum. Support is near 18,800 ₹, resistance at 26,486 ₹. Entry around 19,000–20,000 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, industry demand, and growth prospects.
Positive
- 🚙 [Debt-Free](ca://s?q=FORCEMOT_debt_free): Debt-to-equity ratio of 0.00 ensures strong financial stability.
- 📈 [Profit Growth](ca://s?q=FORCEMOT_profit_growth): PAT rose to 274 Cr from 252 Cr.
- 💹 [High Returns](ca://s?q=FORCEMOT_high_returns): ROCE (35.4%) and ROE (28.7%) reflect excellent efficiency.
Limitation
- 📉 [Valuation](ca://s?q=FORCEMOT_valuation): P/B ratio of ~6.1 is relatively high.
- ⚠️ [Volatility](ca://s?q=FORCEMOT_volatility): Wide 52-week range (10,158 ₹ – 26,486 ₹) indicates price swings.
- 📊 [DII Outflow](ca://s?q=FORCEMOT_DII_outflow): Domestic institutions reduced holdings by -0.05%.
Company Negative News
- 📉 [DII Reduction](ca://s?q=FORCEMOT_DII_reduction): Decline in domestic institutional holdings.
Company Positive News
- 📈 [FII Inflow](ca://s?q=FORCEMOT_FII_inflow): Foreign investors increased holdings by 0.47%.
- 💹 [Strong EPS](ca://s?q=FORCEMOT_EPS): EPS of 919 ₹ reflects robust profitability.
Industry
- 🚜 [Automobile Growth](ca://s?q=Indian_automobile_growth): Sector expanding with rising demand for commercial and utility vehicles.
- 📊 [Industry PE](ca://s?q=Automobile_industry_PE): Sector average P/E is 27.7, slightly above FORCEMOT’s valuation.
Conclusion
✅ FORCEMOT demonstrates strong fundamentals, profitability, and zero debt, making it a fundamentally sound investment. While valuations are fair, high returns and growth prospects justify long-term confidence. Entry around 19,000–20,000 ₹ is favorable, and long-term holding is recommended given the company’s resilience, diversified portfolio, and industry outlook.