FORCEMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| 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 |
📉 Chart & Trend: FORCEMOT is trading at ₹21,500, almost equal to its 50 DMA (₹21,549) and well above its 200 DMA (₹17,925). This indicates strong long-term support but short-term consolidation. The stock is in a consolidation phase with mild bearish bias.
📊 Momentum Indicators:
- RSI at 47.3 shows neutral momentum, neither overbought nor oversold.
- MACD at -357 confirms bearish crossover, signaling short-term weakness.
- Bollinger Bands: Price is near the mid-band, suggesting sideways consolidation.
- Volume is slightly below average (1,01,598 vs 1,10,303), showing reduced participation.
📈 Support & Resistance:
- Immediate support: ₹21,000–21,200 zone.
- Strong support: ₹17,925 (200 DMA).
- Resistance zones: ₹21,549 (50 DMA) and ₹22,500–23,000 (short-term resistance).
- Optimal entry: ₹21,000–21,200 near support.
- Exit zone: ₹22,500–23,000 if rebound occurs.
🔎 Trend Status: The stock is consolidating, awaiting breakout above 50 DMA for trend continuation.
Positive
- EPS of ₹1,038 shows strong earnings power.
- Zero debt-to-equity ratio indicates robust financial health.
- ROCE (29.3%) and ROE (20.2%) highlight excellent capital efficiency.
- DII holding increased by +0.32%, reflecting domestic institutional support.
Limitation
- Price stuck near 50 DMA signals lack of momentum.
- MACD shows bearish crossover, limiting immediate upside.
- PAT declined to ₹252 Cr from ₹350 Cr, showing earnings pressure.
Company Negative News
- FII holding increased only marginally (+0.19%), showing limited foreign investor confidence.
- Sequential PAT decline highlights short-term profitability concerns.
Company Positive News
- DII holding increased by +0.32%, reflecting domestic institutional confidence.
- Quarterly profit variation (+129%) highlights strong year-on-year operational improvement.
Industry
- Automobile and commercial vehicle sector is cyclical, influenced by demand trends, infrastructure growth, and rural economy.
- Industry PE at 29.0 is close to FORCEMOT’s PE (29.5), suggesting fair valuation compared to peers.
Conclusion
📌 FORCEMOT is consolidating near its 50 DMA with neutral momentum. Entry is favorable around ₹21,000–21,200 with stop-loss below ₹20,800. Short-term rebound may target ₹22,500–23,000, but sustained breakout requires volume confirmation. Fundamentally strong with high ROCE/ROE and zero debt, making it attractive for long-term investors despite short-term earnings pressure.
Would you like me to extend this into a peer benchmarking overlay against commercial vehicle leaders like Ashok Leyland, Tata Motors, and Eicher Motors to highlight relative strength and sector rotation opportunities?