Check Before You Invest : Force Motors Ltd

Q: Which industry/sub-sector does Force Motors Ltd belong to?

Force Motors Ltd belongs to the Automobiles sector, operating specifically within the Automobiles-Trucks/Lcv segment.

Q: Is Force Motors Ltd a good quality company?

Force Motors Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Force Motors Ltd undervalued or overvalued?

Force Motors Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.04, Historic Median: 18.15. Price to Book, Current: 6.08, Historic Median: 3.97. Price to Sales, Current: 2.81, Historic Median: 1.29. EV to EBITDA, Current: 15.48, Historic Median: 15.33

Q: Is Force Motors Ltd a good buy now?

Force Motors Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Force Motors Ltd?

Force Motors Ltd revenue growth is 15.4% for FY-2025, which is below its 5-year CAGR of 21.25%, indicating slower growth.

Q: Gross Profit margin of Force Motors Ltd?

Force Motors Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025, which is above its 5-year median of 6.4%, indicating increasing margins.

Q: Operating Profit Margin of Force Motors Ltd?

Force Motors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.61% for FY-2025, which is above its 5-year median of 6.82% indicating increasing margins.

Q: Net Profit Margin of Force Motors Ltd?

Force Motors Ltd Net Profit Margin is 9.92% for FY-2025, is above its 5-year median of 2.66%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.9, Historic Median: 6.4. Operating Profit Margin (%), Current: 13.61, Historic Median: 6.82. Net Profit Margin (%), Current: 9.92, Historic Median: 2.66

Q: Return on Asset of Force Motors Ltd?

Force Motors Ltd Return on Asset is 16.77%, which is above its 5-year historical median of 3.53%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Force Motors Ltd?

Force Motors Ltd Return on capital employed is 43.36% for FY-2025, which is above its 5-year historical median of 12.07%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Force Motors Ltd

Snapshot

Q.1 Which industry/sub-sector does Force Motors Ltd belong to?

Force Motors Ltd belongs to the Automobiles sector, operating specifically within the Automobiles-Trucks/Lcv segment.

Q.2 Is Force Motors Ltd a good quality company?

Force Motors Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Force Motors Ltd undervalued or overvalued?

Force Motors Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	21.04	18.15
Price to Book	6.08	3.97
Price to Sales	2.81	1.29
EV to EBITDA	15.48	15.33

Q.4 Is Force Motors Ltd a good buy now?

Force Motors Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Force Motors Ltd?

Force Motors Ltd revenue growth is 15.4% for FY-2025, which is below its 5-year CAGR of 21.25%, indicating slower growth.

Q.2 Gross Profit margin of Force Motors Ltd?

Force Motors Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025, which is above its 5-year median of 6.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Force Motors Ltd?

Force Motors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.61% for FY-2025, which is above its 5-year median of 6.82% indicating increasing margins.

Q.4 Net Profit Margin of Force Motors Ltd?

Force Motors Ltd Net Profit Margin is 9.92% for FY-2025, is above its 5-year median of 2.66%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.9	6.4
Operating Profit Margin (%)	13.61	6.82
Net Profit Margin (%)	9.92	2.66

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Force Motors Ltd?

Force Motors Ltd Return on Asset is 16.77%, which is above its 5-year historical median of 3.53%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Force Motors Ltd?

Force Motors Ltd Return on capital employed is 43.36% for FY-2025, which is above its 5-year historical median of 12.07%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Force Motors Ltd?

Force Motors Ltd Return on equity is 30.29% for FY-2025, which is above its 5-year historical median of 7.38%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Force Motors Ltd?

Force Motors Ltd Cash conversion cycle is 18 days, below its 5-year historical median of 20 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.69	1.33
ROE (%)	30.29	7.38
ROCE (%)	43.36	12.07
Cash Conversion Cycle	18 days	20 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Force Motors Ltd?

Force Motors Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Force Motors Ltd?

Force Motors Ltd Debt to cash flow from operations is 0.02, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Force Motors Ltd?

Q.1 Promoter shareholding and pledge status of Force Motors Ltd?

Promoters hold 61.63% of the Force Motors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Force Motors Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Force Motors Ltd vs industry peers?

Force Motors Ltd revenue CAGR is 21.25%, compared to the industry median CAGR of 21.25%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.4	21.3
Gross Profit Growth (%)	26.8	51.5
Operating Profit Growth (%)	20.2	76.5
Net Profit Growth (%)	106.4	66.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.69	1.03
ROE (%)	30.29	7.83
ROCE (%)	43.36	12.69
Cash Conversion Cycle (days)	17.8	53

Valuation & price assessment

Q.1 Stock return of Force Motors Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	20.2%	72.9%	141.8%	84.2%

Q.2 Valuation ratios of Force Motors Ltd vs historical?

The current P/E ratio of 21.04 is higher than its historical median of 18.15, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.04	18.15	28.09
Price to Book	6.08	3.97	6.71
Price to Sales	2.81	1.29	1.52
EV to EBITDA	15.48	15.33	16.60

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Check Before You Invest : Force Motors Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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