Force Motors Ltd - Stock Valuation and Financial Performance

BSE: 500033 | NSE: FORCEMOT | Automobiles-Trucks/Lcv | Small Cap

Force Motors Share Price

8,743.30 -115.35 -1.30%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Force Motors

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Force Motors stock performance -

mw4me loader
P/E Ratio (CD):
29.21
Market Cap:
11,520.4 Cr.
52-wk low:
1,235.1
52-wk high:
9,240

Is Force Motors Ltd an attractive stock to invest in?

1. Is Force Motors Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Force Motors Ltd is a below average quality company.

2. Is Force Motors Ltd undervalued or overvalued?

The key valuation ratios of Force Motors Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Force Motors Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Force Motors Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Force Motors:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.8%7.4%12.9%10.2%8.5%7.3%4.2%-3.8%-2.9%-0.9%-
Value Creation
Index
-0.5-0.5-0.1-0.3-0.4-0.5-0.7-1.3-1.2-1.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,0222,3643,0253,0693,4233,6523,0811,9883,2405,0296,471
Sales YoY Gr.-16.9%28%1.5%11.5%6.7%-15.7%-35.5%63%55.2%-
Adj EPS 59.970.2136.7127114.8102.757.5-83.5-80.1-55.9299.3
YoY Gr.-17.2%94.7%-7.1%-9.6%-10.6%-44.1%-245.2%NANA-
BVPS (₹) 931.71,000.81,130.21,265.21,366.61,466.81,491.21,394.41,326.21,422.61,609.3
Adj Net
Profit
78.992.518016715113575.7-110-106-73.7395
Cash Flow from Ops. 1162262564712563144097.318.4532-
Debt/CF from Ops. 0.50.10.10.400.90.887.5581.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.7%8%17.8%55.2%
Adj EPS -199.2%-186.6%-199.1%NA
BVPS4.8%0.8%-1.6%7.3%
Share Price 37% 37.5% 97.6% 597.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
6.67.312.810.68.77.33.9-5.8-5.9-4.119.8
Op. Profit
Mgn %
56.29.18.78.17.68.71.82.16.811.6
Net Profit
Mgn %
3.93.965.54.43.72.5-5.5-3.3-1.56.1
Debt to
Equity
0000.100.20.20.40.60.5-
Working Cap
Days
145122961151231191372011219347
Cash Conv.
Cycle
2714127920224432201

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.70%

Sales growth is growing at healthy rate in last 3 years 17.75%

Sales growth is good in last 4 quarters at 48.64%

Net Profit has been subdued in last 3 years -199.09%

Latest Financials - Force Motors Ltd.

Standalone Consolidated
TTM EPS (₹) 314.3 299.3
TTM Sales (₹ Cr.) 6,471 6,471
BVPS (₹.) 1,658.7 1,609.3
Reserves (₹ Cr.) 2,172 2,107
P/BV 5.27 5.43
PE 27.82 29.21
From the Market
52 Week Low / High (₹) 1235.05 / 9240.00
All Time Low / High (₹) 54.50 / 9240.00
Market Cap (₹ Cr.) 11,520
Equity (₹ Cr.) 13.2
Face Value (₹) 10
Industry PE 36.5

Management X-Ray of Force Motors:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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Analyst's Notes

Key Ratios of Force Motors

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,0222,3643,0253,0693,4233,6523,0811,9883,2405,029
Operating Expenses 1,9252,2172,7512,8013,1553,3742,8121,9753,1734,699
Manufacturing Costs132141152152163162151109135217
Material Costs1,4161,6412,1722,2022,5582,7802,2231,4942,6193,920
Employee Cost 241278304350387405407351368422
Other Costs 136157122974826312151140
Operating Profit 971472742682682792691367330
Operating Profit Margin (%) 4.8%6.2%9.1%8.7%7.8%7.6%8.7%0.7%2.1%6.6%
Other Income 60667185698243255262
Interest 975671528284168
Depreciation 858192113129151195174191241
Exceptional Items 000100-3900208
Profit Before Tax 6312524923520119042-176-130272
Tax -152470555347-8-52-39139
Profit After Tax 7810217918014714350-124-91134
PAT Margin (%) 3.9%4.3%5.9%5.9%4.3%3.9%1.6%-6.2%-2.8%2.7%
Adjusted EPS (₹)59.277.2135.9136.8111.8108.838.1-93.8-69.1101.4
Dividend Payout Ratio (%)5%6%7%7%9%9%26%-5%-14%10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,2281,3191,4901,6681,8011,9331,9651,8381,7481,875
Share Capital 13131313131313131313
Reserves 1,2151,3061,4761,6541,7881,9201,9521,8251,7351,862
Minority Interest1112222222
Debt201131980257235524811690
Long Term Debt2011320206188494601595
Short Term Debt000196051473021095
Trade Payables300393417485565395580440517745
Others Liabilities 447296397240155249309376490696
Total Liabilities 1,9962,0202,3082,5922,5232,8363,0913,1803,5674,008

Fixed Assets

Gross Block1,5341,6121,8482,0792,1942,6092,9862,9153,9084,201
Accumulated Depreciation8919751,0631,1731,2521,3991,5911,6971,8802,113
Net Fixed Assets6436387869059421,2101,3951,2182,0282,087
CWIP 206240205220369372445725302154
Investments 008910237810011197
Inventories377393548438477504552558637827
Trade Receivables135109150115242167169126189197
Cash Equivalents 220307319236435693775141
Others Assets415334293670440556385416225505
Total Assets 1,9962,0202,3082,5922,5232,8363,0913,1803,5674,008

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 116226256471256314409718532
PBT 6312524923520119042-176-130272
Adjustment 80687396118151213231246454
Changes in Working Capital -2565-28200-3521171-46-100-191
Tax Paid -2-33-38-60-28-47-16-32-3
Cash Flow From Investing Activity -100-96-210-621-81-606-327-333-356-256
Capex -114-117-237-234-318-497-458-452-334-258
Net Investments 000-400200-123109110-220
Others 152127143815221001
Cash Flow From Financing Activity -30-45-37180-223256-20293375-207
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -22-1000000000
Interest Paid -9-8-6-6-7-14-28-28-48-72
Dividend Paid -5-5-240-13-13-13-13-7-13
Others 6-22-8187-20328321335429-121
Net Cash Flow -1485930-47-3562-323768
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)6.547.9812.7511.418.497.682.58-6.5-5.087.38
ROCE (%)5.7610.0717.8614.2911.310.223.11-6.21-3.3512.07
Asset Turnover Ratio1.171.311.61.431.381.361.040.630.961.33
PAT to CFO Conversion(x)1.492.221.432.621.742.28.18N/AN/A3.97
Working Capital Days
Receivable Days19171414182020271814
Inventory Days605350514749631026753
Payable Days717768757563801256759

Force Motors Ltd Stock News

Force Motors Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Force Motors on 12-Apr-2024 16:59 is ₹8,743.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Force Motors stood at ₹11,520.4.
The latest P/E ratio of Force Motors as of 12-Apr-2024 16:59 is 27.82.
The latest P/B ratio of Force Motors as of 12-Apr-2024 16:59 is 5.27.
The 52-week high of Force Motors is ₹9,240 and the 52-week low is ₹1,235.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Force Motors is ₹6,471 ( Cr.) .

About Force Motors Ltd

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
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