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Check Before You Invest : Forge Auto International Ltd

BSE: 0 NSE: FORGEAUTO ISIN: INE0YKW01013
  |   Sector:  Automobiles   |   Industry:  Forgings

Snapshot

Q.1 Which industry/sub-sector does Forge Auto International Ltd belong to?
Forge Auto International Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.
Q.2 Is Forge Auto International Ltd a good quality company?
Forge Auto International Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Forge Auto International Ltd undervalued or overvalued?
Forge Auto International Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Forge Auto International Ltd a good buy now?
Forge Auto International 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

Q.1 Revenue growth of Forge Auto International Ltd?
Forge Auto International Ltd revenue growth is 16.5% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Forge Auto International Ltd?
Forge Auto International Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025 , which is above its 5 year median of 3.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Forge Auto International Ltd?
Forge Auto International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.66% for FY-2025 , which is above its 5 year median of 4.04% indicating increasing margins.
Q.4 Net Profit Margin of Forge Auto International Ltd?
Forge Auto International Ltd Net Profit Margin is 4.54% for FY-2025 , is above with its 5 year median of 1.86%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.8 3.3
Operating Profit Margin 8.66 4.04
Net Profit Margin 4.54 1.86
Q.5 Return on Asset of Forge Auto International Ltd?
Forge Auto International Ltd Return on Asset is 8.06%, which is above its 5 year historical median of 3.3%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Forge Auto International Ltd?
Forge Auto International Ltd Return on equity is 24.11% for FY-2025 , which is above its historical median of 12.06%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Forge Auto International Ltd?
Forge Auto International Ltd Return on capital employed is 22.41% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Forge Auto International Ltd?
Forge Auto International Ltd Cash conversion cycle is 68 days, above its historical median of 0 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.78 0.89
ROE 24.11 12.06
ROCE 22.41 10.93
Cash Conversion Cycle 68 days -
Q.9 Debt to Equity ratio of Forge Auto International Ltd?
Forge Auto International Ltd Debt-to-Equity ratio is 0.61 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Forge Auto International Ltd?
Forge Auto International Ltd Debt to cash flow from operations is -4.99 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Forge Auto International Ltd?
Promoters hold 73.63% of the Forge Auto International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Forge Auto International Ltd vs industry peers?
Forge Auto International Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 11.56% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 209.9 115.9
Gross Profit 16.4 8.3
Operating Profit 17.8 13
Net Profit 9.5 4
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.78 0.92
ROE 24.11 14.91
ROCE 22.41 14.66
Cash Conversion Cycle (days) 67.66 112

Valuation & price assessment

Q.1 Stock return of Forge Auto International Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 23.63% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 23.6%
Q.3 Valuation ratios of Forge Auto International Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.37 12.79 50.79
Price to Book 1.7 2.62 3.87
Price to Sales 0.47 0.48 1.86
EV to EBITDA 6.46 7.86 16.47

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