Force Motors (FORCEMOT)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Force Motors as a debt-free auto franchise. Market cap ₹24,193 Cr, price ₹18,361. Debt/equity is 0.00, ROE 45.09%, ROCE 29.99%. That combination tells me the business earns high returns without borrowed money. Piotroski 8/9 and Altman Z 6.95 reinforce balance-sheet strength. Promoter holding 61.63% gives owner alignment. Five-year revenue CAGR 21.24% and latest quarter sales ₹2,129 Cr, net profit ₹406 Cr, plus FCF ₹620 Cr, show real cash generation. But recent sales growth is 6.71% and profit growth 14.50%, so the fast historical pace has cooled. The moat in passenger cars and utility vehicles is not as wide as a branded consumer staple; it is capital-intensive and cyclical. Valuation is mixed. P/E 19.34 is not demanding if earnings hold, and PEG 0.32 and DCF intrinsic value ₹25,200.19 suggest upside. However, P/B 5.87 and Graham Number ₹7,326.39 versus ₹18,361 give a margin of safety of -232.24%. Graham would not call this a bargain on assets. The 0.22% dividend yield offers little current return. EV/EBITDA of -10.11 is unusual and I would not lean on it without clearer cash/debt reconciliation. FairStock 70/100 STEADY fits a quality-but-not-cheap profile. So I see a high-quality, debt-free, high-ROE business, but price already reflects much of it. I would watch growth, ROCE, FCF, and whether a wider margin of safety appears. Category: Stalwart.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer