Live Webinar on "How to Invest successfully to reach goals without losing sleep" Sign up for Live Webinar
investing succesffuly to reach your goals investing succesffuly to reach your goals
X

Force Motors Ltd Stock Analysis

Small Cap
Evaluated by 1716 users | BSE: 500033 | NSE: FORCEMOT |
Automobiles-Trucks/Lcv

Force Motors was established in 1958 by N. K. Firodia, with the vision to provide affordable commercial transport for the masses by harnessing the best available technology and offering economical, reliable and efficient products. Currently, its range...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Force Motors Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'08Mar'09Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Capital Employed -20.29%-29.83%2.22%6.98%7.52%12.9%10.1%8.49%7.26%4.23%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0108911,9732,0222,3643,0253,0693,4233,6523,0811,988
Y-o-Y Gr. Rt.--11.8%121.5%2.5%16.9%28%1.5%11.5%6.7%-15.7%-
Adjusted EPS (Rs.) -105.54-151.7910.6859.8970.12136.04126.34114.77102.757.33-93.83
Y-o-Y Gr. Rt.-NANA460.8%17.1%94%-7.1%-9.2%-10.5%-44.2%-
Book Value per Share (Rs.) 10.7464.55876.17931.741,000.831,130.231,265.241,366.561,466.781,491.151394.80
Adjusted Net Profit -139-20014.178.992.417916615113575.6-124
Net Op. Cash Flow (Rs. Cr.) 15.8-25486116226256471256314409-
Debt to Cash Flow from Ops 30.76-1.20.490.180.050.050.4300.910.76-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Force Motors Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.2%5.4%0.1%-15.7%
Adjusted EPS NA-4%-23.2%-44.2%
Book Value per Share 738.35.61.7
Share Price 14.3% -13.9% -17% 56.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'08Mar'09Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Equity (%) -156.27-111.361.886.637.2612.7710.558.727.253.88-6.5
Operating Profit Margin (%) -9.69-17.12.755.036.239.138.738.067.638.73-1.15
Net Profit Margin (%) -16.65-22.450.713.93.915.955.454.423.822.72-6.22
Debt to Equity 34.323.580.040.020.010.010.1200.150.160.27
Working Capital Days 17022812814512296115123119137130
Cash Conversion Cycle -812182714127920221
Entity Percentage Holding
Promoters 61.63%
Institutions 5.21%
Non-Institutions 33.16%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Force Motors Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Force Motors Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Force Motors Ltd's performance infers:

Force Motors Ltd earnings have declined by -4%, whereas share price has depreciated -13.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Force Motors Ltd share prices over the last 10 years. Here is what we found out:

Force Motors Ltd share price has depreciated 8.2% annually over the past ten years.

Force Motors was established in 1958 by N. K. Firodia, with the vision to provide affordable commercial transport for the masses by harnessing the best available technology and offering economical, reliable and efficient products. Currently, its range includes Small Commercial Vehicles (SCV), Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Special Utility Vehicles (SUV) and Agricultural Tractors.

Read More

Force Motors was established in 1958 by N. K. Firodia, with the vision to provide affordable commercial transport for the masses by harnessing the best available technology and offering economical, reliable and efficient products. Currently, its range includes Small Commercial Vehicles (SCV), Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Special Utility Vehicles (SUV) and Agricultural Tractors.

Force Motors is fully vertically integrated, making its own engines, chassis, gear boxes, axles, bodies etc. for the entire product range. It provides appropriate solutions for transport - both goods, as well as passenger - rugged, reliable and efficient transport solutions for every need - rural or urban, long distance or local, over good roads or bad tracks. The company continues in the founder's vision of providing efficient, utilitarian vehicles that empower the individual entrepreneur to meet his and the country's ever changing needs.

Business area of the company

The company is a fully vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles. The company's product range includes Tractors, Three wheelers, Light commercial vehicles, Multi Utility Vehicles and Heavy commercial vehicles.

Company’s brands

  • Traveller Monobus
  • Traveller
  • Trax
  • Gurkha
  • Balwan
  • Kargo King

Milestones

  • 1958: Production of Tempo 3 Wheeler ‘Hanseat’
  • 1964: Production of Viking Petrol LCV
  • 1972: Production of Metador Diesel LCV
  • 1987: Production of Tempo Traveller
  • 1997: production of Engines for MBIL & Technical Collaboration with ZF for tractor transmission
  • 2003: Collaboration for production of trucks and busses
  • 2004: Technical collaboration for manufacturing of heavy gear boxes
  • 2015: Production of BMW Engines
  • 2016: Production of Mercedes Engines
  • 2018: Joint Venture with Rolls Royce Power system for the production of series 1600 engines
  • 2019: Force Motors launched Gurkha Xtreme
  • 2019: Force Traveller Citibuses Inducted Into BEST Fleet
  • 2020: Force Motors invests Rs 1,000 crore on 11-18 seater LCV platform
  • 2020: Force Motors invests Rs 1,000 crore on next gen platform
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback