FORCEMOT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.4
| Stock Code | FORCEMOT | Market Cap | 26,430 Cr. | Current Price | 20,063 ₹ | High / Low | 22,000 ₹ |
| Stock P/E | 32.3 | Book Value | 2,720 ₹ | Dividend Yield | 0.20 % | ROCE | 29.3 % |
| ROE | 20.2 % | Face Value | 10.0 ₹ | DMA 50 | 19,053 ₹ | DMA 200 | 16,238 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.32 % | PAT Qtr | 350 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 54.6 | MACD | 82.4 | Volume | 59,053 | Avg Vol 1Wk | 52,744 |
| Low price | 6,200 ₹ | High price | 22,000 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.00 |
| 52w Index | 87.7 % | Qtr Profit Var | 148 % | EPS | 815 ₹ | Industry PE | 32.0 |
📊 FORCEMOT shows strong potential for swing trading. The fundamentals are excellent with high ROCE (29.3%) and ROE (20.2%), debt-free status (0.00), and robust EPS (815 ₹). The P/E ratio (32.3) is aligned with the industry average (32.0), suggesting fair valuation. Technically, the stock is trading well above both 50 DMA (19,053 ₹) and 200 DMA (16,238 ₹), supported by bullish indicators: RSI at 54.6 and MACD at 82.4. Quarterly PAT growth (+148%) adds strong momentum, and institutional holdings have increased slightly. Overall, the stock is a good candidate for swing trading.
💡 Optimal Entry Price: Around 19,800–20,000 ₹ (near support zone close to 50 DMA).
🚪 Exit Strategy: If already holding, consider exiting near 21,800–22,000 ₹ (resistance zone close to 52-week high).
✅ Positive
- Strong ROCE (29.3%) and ROE (20.2%) reflect efficient capital use.
- Debt-free balance sheet (Debt-to-equity 0.00).
- EPS of 815 ₹ highlights robust profitability.
- Quarterly PAT surged from 185 Cr. to 350 Cr. (+148%).
- Stock trading above both 50 DMA and 200 DMA, showing strong momentum.
- PEG ratio of 0.29 suggests undervaluation relative to growth.
⚠️ Limitation
- Dividend yield is low at 0.20%, offering limited passive returns.
- High volatility with wide 52-week range (6,200 ₹ – 22,000 ₹).
- Trading volume relatively modest compared to market cap.
📉 Company Negative News
- Dividend payout remains minimal despite strong earnings.
- High volatility may pose risks for short-term traders.
📈 Company Positive News
- Quarterly PAT growth (+148%) indicates strong operational performance.
- FII (+0.19%) and DII (+0.32%) holdings increased, showing institutional confidence.
- Technical indicators (RSI and MACD) support bullish trend.
🏭 Industry
- Industry PE at 32.0, aligned with company’s PE (32.3), suggesting fair valuation.
- Automobile sector outlook remains positive with strong demand recovery.
🔎 Conclusion
FORCEMOT is fundamentally strong and technically bullish, making it a good candidate for swing trading. Entry around 19,800–20,000 ₹ offers a favorable setup, with exit near 21,800–22,000 ₹. Traders should remain cautious of volatility but can benefit from strong momentum and earnings growth.