FORCEMOT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | FORCEMOT | Market Cap | 27,317 Cr. | Current Price | 20,720 ₹ | High / Low | 26,486 ₹ |
| Stock P/E | 28.4 | Book Value | 2,720 ₹ | Dividend Yield | 0.19 % | ROCE | 29.3 % |
| ROE | 20.2 % | Face Value | 10.0 ₹ | DMA 50 | 21,517 ₹ | DMA 200 | 17,953 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.32 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 350 Cr. |
| RSI | 43.1 | MACD | -408 | Volume | 82,416 | Avg Vol 1Wk | 1,06,521 |
| Low price | 7,770 ₹ | High price | 26,486 ₹ | PEG Ratio | 0.26 | Debt to equity | 0.00 |
| 52w Index | 69.2 % | Qtr Profit Var | 129 % | EPS | 1,038 ₹ | Industry PE | 28.2 |
📊 FORCEMOT shows strong fundamentals with ROCE (29.3%) and ROE (20.2%), supported by zero debt-to-equity ratio, which indicates excellent financial stability. EPS of 1,038 ₹ reflects robust earnings, and the P/E of 28.4 is aligned with the industry average (28.2), suggesting fair valuation. However, technical indicators (RSI 43.1, MACD -408) show bearish momentum, and the stock is trading slightly below DMA 50 (21,517 ₹). Quarterly PAT declined (252 Cr. vs 350 Cr.), showing short-term earnings pressure. This makes FORCEMOT a good candidate for swing trading with cautious positioning.
💡 Optimal Entry Price: Around 20,500–20,700 ₹ (near current support zone).
📉 Exit Strategy (if already holding): Consider booking profits near 21,500–21,700 ₹ (DMA 50 resistance) unless momentum strengthens further.
Positive
- Strong ROCE (29.3%) and ROE (20.2%) indicate efficient capital utilization.
- Zero debt-to-equity ratio shows excellent financial stability.
- EPS of 1,038 ₹ supports valuation strength.
- P/E of 28.4 is aligned with industry average, showing fair valuation.
- DII holdings increased (+0.32%), showing domestic institutional support.
Limitation
- Quarterly PAT declined (252 Cr. vs 350 Cr.), showing earnings pressure.
- RSI and MACD indicate bearish momentum.
- Dividend yield of 0.19% is very low, offering minimal income support.
- Current price (20,720 ₹) is slightly below DMA 50, reflecting technical weakness.
Company Negative News
- Quarterly PAT dropped compared to previous quarter.
- Stock trading below DMA 50, reflecting short-term weakness.
Company Positive News
- EPS remains strong at 1,038 ₹.
- FII holdings increased slightly (+0.19%), showing foreign investor confidence.
- DII holdings increased (+0.32%), showing domestic support.
Industry
- Industry P/E is 28.2, while company P/E is 28.4, showing fair valuation.
- Automobile and commercial vehicle sector remains cyclical but supported by infrastructure and industrial demand.
Conclusion
✅ FORCEMOT is a moderately strong swing trade candidate. Strong fundamentals, zero debt, and fair valuation support potential upside, though weak technicals and declining quarterly PAT require caution. Entry near 20,500–20,700 ₹ offers favorable risk-reward, with exit targets around 21,500–21,700 ₹. A strict stop-loss near 20,300 ₹ is advisable to manage downside risk.