⚠ 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: 4.0
| Stock Code | FORCEMOT | Market Cap | 28,296 Cr. | Current Price | 21,500 ₹ | High / Low | 26,486 ₹ |
| Stock P/E | 29.5 | Book Value | 2,720 ₹ | Dividend Yield | 0.19 % | ROCE | 29.3 % |
| ROE | 20.2 % | Face Value | 10.0 ₹ | DMA 50 | 21,549 ₹ | DMA 200 | 17,925 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.32 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 350 Cr. |
| RSI | 47.3 | MACD | -357 | Volume | 1,01,598 | Avg Vol 1Wk | 1,10,303 |
| Low price | 7,418 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.27 | Debt to equity | 0.00 |
| 52w Index | 73.8 % | Qtr Profit Var | 129 % | EPS | 1,038 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue growth: PAT declined to 252 Cr. from 350 Cr., showing short-term weakness but overall strong growth trend
- Profit margins: EPS at 1,038 ₹, ROE 20.2%, ROCE 29.3% — excellent efficiency
- Debt ratios: Debt-to-equity at 0.00, debt-free balance sheet
- Cash flows: Strong profitability supports robust cash generation
- Return metrics: ROE and ROCE well above industry averages
💹 Valuation Indicators
- P/E Ratio: 29.5, in line with industry PE of 29.0, fair valuation
- P/B Ratio: ~7.9 (21,500 ₹ / 2,720 ₹), relatively high
- PEG Ratio: 0.27, attractive and suggests undervaluation relative to growth
- Intrinsic Value: Current price appears fairly valued with potential upside
🏢 Business Model & Competitive Advantage
- Operates in automotive and commercial vehicle manufacturing sector
- Competitive advantage through strong brand presence and diversified product portfolio
- Industry demand supported by infrastructure growth, logistics expansion, and rural mobility
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 20,500–21,000 ₹ range
- Long-Term Holding: Strongly recommended; fundamentals are robust and valuation is fair
✅ Positive
- High ROE (20.2%) and ROCE (29.3%) indicate excellent capital efficiency
- Debt-free company with debt-to-equity ratio at 0.00
- DII holding increased (+0.32%), FII holding also up (+0.19%)
⚠️ Limitation
- PAT declined from 350 Cr. to 252 Cr.
- P/B ratio (~7.9) is relatively high
- MACD at -357 indicates bearish sentiment
📰 Company Negative News
- Quarterly profit decline indicates earnings volatility
- Stock corrected from 52-week high of 26,486 ₹
🌟 Company Positive News
- Strong EPS at 1,038 ₹
- PEG ratio at 0.27 highlights undervaluation relative to growth
- Stock price recovered significantly from 52-week low of 7,418 ₹
🏭 Industry
- Industry PE at 29.0, FORCEMOT trades in line with peers
- Sector benefits from infrastructure expansion, logistics growth, and demand for commercial vehicles
🔎 Conclusion
- FORCEMOT shows strong fundamentals with excellent profitability, high returns, and debt-free status
- Valuation is fair compared to industry peers, with PEG ratio suggesting attractive entry
- Recommended for long-term holding, with entry near 20,500–21,000 ₹ offering strong risk-reward potential