X

Force Motors Ltd. Stock Analysis

Small Cap
Evaluated by 1647 users | BSE: 500033 | NSE: FORCEMOT |
Automobiles-Trucks/Lcv
Force Motors Ltd was incorporated in the year 1958 by signing a collaboration between Vidal & Sohn Tempo Werke. The company, formerly known as Bajaj Tempo Limited, is a Firodia Enterprise company established in 1958 the founder and the managing director for the company was N K...

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'20
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.) 1,0108911,9732,0222,3643,0253,0693,4233,6523,081
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
Y-o-Y Gr. Rt.-NANA460.8%17.1%94%-7.1%-9.2%-10.5%-44.2%
Book Value per Share (Rs.) 10.7464.55876.17931.741,000.831,130.231,265.241,366.561,466.781,491.15
Adjusted Net Profit -139-20014.178.992.417916615113575.6
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 6.9% -21.5% -34.4% -3.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'08Mar'09Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -156.27-111.361.886.637.2612.7710.558.727.253.88
Operating Profit Margin (%) -9.69-17.12.755.036.239.138.738.067.638.73
Net Profit Margin (%) -16.65-22.450.713.93.915.955.454.423.822.72
Debt to Equity 34.323.580.040.020.010.010.1200.150.16
Working Capital Days 17022812814512296115123119137
Cash Conversion Cycle -81218271412792022
Entity Percentage Holding
Promoters 61.63%
Institutions 4.82%
Non-Institutions 33.55%
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 -21.5% 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 0.1% annually over the past ten years.

Force Motors Ltd was incorporated in the year 1958 by signing a collaboration between Vidal & Sohn Tempo Werke. The company, formerly known as Bajaj Tempo Limited, is a Firodia Enterprise company established in 1958 the founder and the managing director for the company was N K Firodia.

Four decades ago, Force Motors started production of the Hanseat three-wheelers in collaboration with Vidal & Sohn Tempo Werke, Germany, and went on to establish a strong presence in the

Force Motors Ltd was incorporated in the year 1958 by signing a collaboration between Vidal & Sohn Tempo Werke. The company, formerly known as Bajaj Tempo Limited, is a Firodia Enterprise company established in 1958 the founder and the managing director for the company was N K Firodia.

Four decades ago, Force Motors started production of the Hanseat three-wheelers in collaboration with Vidal & Sohn Tempo Werke, Germany, and went on to establish a strong presence in the light commercial vehicles (LCV) field with the Matador, the proverbial  LCV in India. Through the 80s and 90s, especially in the last five years with a major product development effort, Force Motors has introduced new LCVs, a new family of utility vehicles, new state-of-the-art tractors, and a new range of three-wheelers.

Force Motors is a fully vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.

Business segment of the company:

Force Motors stands on the threshold of a new era in the automobile industry in India, with a stake in five products

1) Tractors: OX and Balwan - Modern tractors, sporting synchromesh transmission, Bosch hydraulics, excellent ergonomics and fuel efficient engines. Designed for demanding farmers of developing countries.  

2) Three wheelers: Minidor - A family of new and beautifully engineered three-wheelers -- economical, rugged and environment friendly -- very efficient transport for people and goods.

3) Light commercial vehicles: Traveller and Excel range of passenger and goods carriers. Powered by a family of DI and IDI engines including the legendary Mercedes derived OM 616 engines. A range of high reliability axles and transmissions add value. 

4) Multi Utility Vehicles: Complete range of multi utility vehicles including Trax Judo, Trax Gama, Trax Cruiser, Trax Kargo King range of single cabin and double cabin pickups. And the 4X4 cross country vehicle - Trax Gurkha.  

5) Heavy commercial vehicles: In technical collaboration with MAN AG, Germany, the company will be introducing shortly a range of heavy commercial vehicles with a payload capacity ranging from 16 to 50 tonnes

Certification:

  • In the year 2000, the Pithampur plant and its Mercedes Engine facilities received the prestigious ISO 9002 certification by quality system.
  • In the year 2003, the entire Akurdi plant and Pithampur plant were certified to 9001:2000.

Milestones

  • 2005

         Tempo was rechristened as FORCE MOTORS LTD.

  • 2006

         New state-of-the-art HCV manufacturing facility was inaugurated at Pithampur.

  • 2008-

          Force Motors launched Traveller Shaktiman, Traveller Luxury and Traveller Smooth.

  • 2011
    Force Motors enters into Agreement with Daimler AG, Germany, in respect of licensing of technology for Multi Purpose Vehicle (MPV).
    Force Motors launched its first offering in the Personal Vehicles segment, the FORCE ONE.
  • 2012

          Force Motors shakes hand with HPCL for oil supplies
          Force Motors introduces a revolutionary passenger vehicle, Traveller 26.

  • 2013
    Force Motors introduces Gurkha, the Extreme Off-Roader Vehicle.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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