Force Motors Ltd logo

Force Motors Ltd

FORCEMOT NSE

Force Motors Ltd was established in 1958, is the flagship company of the Abhay Firodia group. The company is in the business of manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle East, Asia, Latin America, and Africa. It was known as Bajaj Tempo till 2005 [1]

AI Verdict: BUY Confidence: 7%

Force Motors trades at a PE of 20.3x with exceptional profit growth of 221% CAGR over 3 years and ROE of 29% last year. The company is almost debt-free and has delivered 65.5% CAGR profit growth over 5 years, though the stock's 104% 3-year CAGR suggests much of the re-rating may already be priced in.

Key Fundamentals

SmallcapCars & Utility VehiclesAutomobiles
Market Cap
₹24,308 Cr
Volatility
Moderate
P/E Ratio
20
EBITDA
₹1,483 Cr
Return on Equity
17.2%
Debt to Equity
0.1
Book Value
₹3,183.26
EPS
₹330.24
52W High
₹26,450
52W Low
₹13,627

Technical Indicators

Key Insights

Strengths

3
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 65.5% CAGR over last 5 years

Growth Rate

Revenue Growth
11.43% ↗
Net Income Growth
38.99% ↗
Cash Flow Change
-4.24% ↘
ROE
53.37% ↗
ROCE
54.44% ↗
EBITDA Margin (Avg.)
11.81% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Force Motors trades at a PE of 20.3x with exceptional profit growth of 221% CAGR over 3 years and ROE of 29% last year. The company is almost debt-free and has delivered 65.5% CAGR profit growth over 5 years, though the stock's 104% 3-year CAGR suggests much of the re-rating may already be priced in.

Bull Case 8
  • Exceptional 3-year compounded profit growth of 221% CAGR demonstrates strong earnings momentum and operating leverage
  • Last year ROE of 29% is significantly above cost of equity, indicating efficient capital deployment
  • Company is almost debt-free, providing financial flexibility and lower risk during economic downturns
  • PE of 20.3x is reasonable relative to 65.5% CAGR 5-year profit growth, implying a PEG ratio of approximately 0.31x
  • 3-year ROE improvement from 16% (5-year average) to 29% (last year) signals structural margin expansion
  • TTM sales growth of 12% provides revenue visibility even as base effects normalize from the 22% 3-year CAGR
  • 10-year compounded sales CAGR of 12% shows consistent long-term demand trajectory for the business
  • Market cap of Rs 24,207 Cr positions the company in the mid-cap space with room for institutional re-rating as coverage expands
Bear Case 8
  • Zero analyst coverage (0 ratings) suggests limited institutional interest and potential liquidity risk for large positions
  • Stock CAGR of 104% over 3 years has significantly outpaced the 22% sales CAGR, indicating valuation stretch from multiple expansion
  • TTM profit growth of 92% will face severe base effect challenges, making forward earnings growth harder to sustain
  • Dividend yield of just 0.21% offers negligible income return, signaling limited shareholder return commitment
  • Price-to-book of 5.86x is elevated for an auto component/vehicle manufacturer, pricing in significant future growth
  • 5-year compounded sales CAGR of 35% decelerating to TTM of 12% shows clear revenue growth slowdown
  • 10-year stock CAGR of only 20% versus 3-year CAGR of 104% highlights cyclicality and mean-reversion risk in returns
  • No known institutional buy/hold/sell recommendations creates an information vacuum and limits price discovery efficiency

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 5
  • Stock hits 52-week low Jun 2

    Force Motors shares fell 5% to ₹17,786.35, hitting a 52-week low. The stock is down 8.23% in a week, 10.17% in a month, and 14.29% YTD.

  • May sales drop 15% Jun 1

    Total sales declined 15.35% to 2,614 units in May 2026 vs 3,088 units in May 2025. Domestic sales hit an 18-month low at 2,560 units, down 14.72% YoY.

  • Exports plunge 37% Jun 2

    Export volumes fell sharply by 37.21% to just 54 units in May 2026 from 86 units in the year-ago period.

  • Q4 net profit down 36% Jun 2

    Consolidated net profit declined 35.93% YoY to ₹278.52 crore in Q4 FY26 compared to ₹434.71 crore in Q4 FY25.

  • Three consecutive sessions of decline Jun 2

    The stock has been falling for three straight sessions, with market cap eroding to ₹23,900.42 crore, ranking 14th in the Auto sector.

Positives 3
  • Company turns debt-free Jun 2

    Force Motors became debt-free for the first time in five years, with interest expenses at less than 1% of operating revenues in Q4 FY26.

  • Q4 revenue up 8% Jun 2

    Revenue from operations grew 8.23% YoY to ₹2,549.84 crore in Q4 FY26 vs ₹2,356.01 crore in Q4 FY25.

  • EBIT margin improves to 25% Jun 2

    EBIT margin improved to 25.03% in Q4 FY26, indicating stronger operational efficiency despite the profit decline.

Neutral 1
  • Safety Manager resigns Jun 1

    Manoj Laxman Patil resigned as Manager - Safety effective June 1, 2026, citing personal reasons. This is a mid-level departure with limited operational impact.

TL;DR: Force Motors is under significant pressure with May sales hitting an 18-month low and Q4 profit declining 36% YoY, driving the stock to a 52-week low. On the positive side, the company has turned debt-free and posted healthy revenue growth with improved EBIT margins at 25%. The volume deterioration across all segments (SCV, LCV, UV, SUV) and weak exports suggest near-term demand headwinds. The trend is deteriorating on the sales front, and unless volume recovery materialises in coming months, margin gains alone may not support the stock.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,490
1,488
1,802
1,692
2,011
1,885
1,941
1,889
2,356
2,297
2,081
2,129
2,550
Expenses
1,372
1,310
1,581
1,477
1,733
1,640
1,664
1,658
2,027
1,974
1,719
1,755
2,136
Operating Profit
118
177
221
215
279
245
277
232
329
323
363
374
414
OPM %
8%
12%
12%
13%
14%
13%
14%
12%
14%
14%
17%
18%
16%
Other Income
246
11
9
4
18
15
9
20
418
25
26
241
39
Interest
18
18
16
14
14
9
5
4
7
0
0
0
3
Depreciation
63
63
67
68
68
69
69
71
72
70
71
73
72
PBT
284
107
147
137
214
182
211
177
668
278
317
543
378
Tax %
48%
36%
36%
37%
35%
36%
36%
35%
35%
36%
-11%
25%
26%
Net Profit
147
69
94
85
140
116
135
115
435
176
351
406
279
EPS in Rs
111
52.06
71.24
64.81
106
87.81
102
87.51
330
134
266
308
211
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,364
3,025
3,069
3,423
3,652
3,081
1,988
3,240
5,029
6,992
8,072
9,057
Expenses
2,217
2,751
2,801
3,155
3,378
2,820
1,964
3,190
4,716
6,096
6,973
7,574
Operating Profit
147
274
268
268
275
261
24
50
313
897
1,099
1,483
OPM %
6%
9%
9%
8%
8%
8%
1%
2%
6%
13%
14%
16%
Other Income
66
71
86
69
82
3
2
52
268
37
446
322
Interest
7
5
6
7
15
28
28
41
68
62
26
3
Depreciation
81
92
113
129
151
195
174
191
241
267
280
286
PBT
125
249
235
201
190
42
-176
-130
272
605
1,238
1,516
Tax %
19%
28%
23%
27%
25%
-20%
-30%
-30%
51%
36%
35%
20%
Net Profit
102
179
180
147
143
50
-124
-91
134
388
801
1,212
EPS in Rs
77.06
136
137
112
109
38.08
-93.83
-69.12
101
295
608
920
Div. Payout %
6%
7%
7%
9%
9%
26%
-5%
-14%
10%
7%
7%
5%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
13
13
13
13
13
13
13
13
13
13
13
13
Reserves
1,306
1,476
1,654
1,788
1,920
1,952
1,825
1,735
1,862
2,242
3,020
4,181
Borrowings
11
14
199
0
286
310
642
1,069
955
524
17
0
Other Liabilities
645
801
738
722
617
823
757
844
1,184
1,635
2,083
2,343
Total Liabilities
1,975
2,305
2,604
2,523
2,836
3,098
3,238
3,661
4,013
4,415
5,134
6,538
Fixed Assets
638
786
911
948
1,216
1,400
1,224
2,033
2,094
2,031
1,969
2,222
CWIP
240
205
220
369
372
445
725
302
154
171
287
236
Investments
0
14
9
10
23
78
100
111
97
91
103
98
Other Assets
1,097
1,300
1,463
1,196
1,225
1,175
1,189
1,215
1,668
2,121
2,775
3,981
Total Assets
1,975
2,305
2,604
2,523
2,836
3,098
3,238
3,661
4,013
4,415
5,134
6,538
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
226
256
471
256
314
409
7
18
532
1,014
971
1,297
Investing
-96
-210
-621
-81
-606
-327
-333
-356
-256
-198
-351
-900
Financing
-45
-37
180
-223
256
-20
293
375
-207
-509
-562
-73
Net Cash Flow
85
9
30
-47
-35
62
-32
37
68
308
58
324
Free Cash Flow
109
19
236
-62
-183
-49
-445
-315
274
810
606
761
CFO/OP
176
107
198
106
131
163
41
32
171
130
108
116
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
17
18
14
26
17
20
23
21
14
5
8
8
Inventory Days
87
92
73
68
66
91
136
89
77
83
73
72
Days Payable
87
70
80
81
52
95
108
72
69
61
48
59
Cash Conversion Cycle
17
40
6
13
31
15
52
38
22
27
32
20
Working Capital Days
15
23
30
43
43
6
-5
-37
-6
-2
16
39
ROCE %
10%
18%
14%
11%
10%
5%
-5%
-3%
5%
24%
30%
36%

Shareholding Pattern

As of Mar 2026
Promoters 61.63%
Public 20.29%
FIIs 10.93%
Others 5.39%
DIIs 1.76%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Feb 2024Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
61.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4.94%
0.00%
0.00%
6.34%
7.78%
7.89%
8.15%
8.35%
9.77%
10.27%
10.46%
10.93%
DIIs
2.33%
2.55%
2.67%
2.54%
3.30%
2.90%
2.21%
2.19%
2.32%
1.48%
1.59%
1.02%
1.02%
0.87%
1.03%
0.92%
0.91%
1.43%
1.66%
1.48%
1.80%
1.76%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
28.30%
28.58%
28.50%
28.70%
28.04%
28.43%
28.85%
28.49%
28.76%
27.87%
26.65%
26.61%
26.34%
25.16%
24.12%
23.74%
23.34%
22.73%
21.42%
20.98%
20.53%
20.29%
Others
7.74%
7.24%
7.19%
7.14%
7.04%
7.05%
7.32%
7.69%
7.30%
9.02%
5.20%
10.74%
11.01%
6.00%
5.45%
5.82%
5.97%
5.85%
5.53%
5.64%
5.59%
5.39%
No. of Shareholders
0
58,157
60,444
61,503
61,570
61,036
60,301
58,475
53,958
50,221
48,086
47,556
46,685
47,742
51,909
56,044
59,207
56,164
59,419
72,334
71,870
78,750

Documents

Frequently Asked Questions about Force Motors Ltd

What does Force Motors Ltd do?
Force Motors Ltd was established in 1958, is the flagship company of the Abhay Firodia group. The company is in the business of manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle Ea...
Where is Force Motors Ltd (FORCEMOT) listed?
Force Motors Ltd is listed on the Indian stock exchanges. It is listed on NSE: FORCEMOT and BSE: 500033. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Force Motors Ltd belong to?
Force Motors Ltd operates in the Consumer Discretionary sector within the Automobiles industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Force Motors Ltd?
Force Motors Ltd has a market capitalisation of approximately ₹24307.69 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Force Motors Ltd?
The Price-to-Earnings (PE) ratio of Force Motors Ltd is 20.00. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Force Motors Ltd?
Over the past 52 weeks, Force Motors Ltd has traded between a low of ₹13,627 and a high of ₹26,450. This range helps investors understand the stock's price volatility and recent trading levels.
Does Force Motors Ltd pay dividends?
Yes, Force Motors Ltd has a dividend yield of 0.22%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Force Motors Ltd?
Force Motors Ltd has a Return on Equity (ROE) of 17.20%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Force Motors Ltd on Tapetide?
On Tapetide, you can view Force Motors Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Force Motors Ltd was established in 1958, is the flagship company of the Abhay Firodia group. The company is in the business of manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle East, Asia, Latin America, and Africa. It was known as Bajaj Tempo till 2005 [1]

Website forcemotors.com
CEO Dr. Abhaykumar Navalmal Firodia
Employees 4,640
Listed 2024-02-14
Face Value ₹ 10
Issued Size 1,30,32,914

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