Force Motors Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹17,700.00+₹122.00 (+0.69%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Force Motors Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Force Motors Limited, an integrated automobile company, designs, develops, manufactures, and sells a range of automotive components, aggregates, and vehicles in India.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees4,832

Annual revenue₹8,980 Cr

How does it make money?

Turns over ₹8,980 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 4,832 employees supports ₹1.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 33.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE19.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +80% while net margin moved +403% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+80%

Margin effect+403%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.67 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

81/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.6x

3Y Median

31.9x

39 monthly readings · mean 38.7x · range 18.5x–93.9x

Sector Median

25.2x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 31.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 25.2x.

vs. its own history

Cheap

31.9x median over 39 months · -42%

vs. sector peers

Cheap

25.2x median of 3 peers · -26%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.1x

PEG

0.17

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 7.5% to 17.7% over 3 years.
Cash generation is improving
Free cash flow is up 178% over 3 years.
Return on equity is rising
ROE has improved from 7.1% to 28.9%.
Return on capital is rising
ROCE has improved from 13.6% to 33.8%.
High return on capital employed
ROCE of 33.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.5% to 17.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.7% CAGR
Latest reported year was 6.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹757 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 31%✓ 33.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 31.9x✓ 18.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹23,322 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.6x

Fair

Fairly valued against the generic band

P/B Ratio

5.66x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹950.08

Profitable

Profitable on a per-share basis

ROE

28.9%

Strong

Strong capital efficiency

ROCE

33.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

6.2%

Modest

Modest growth

Profit Growth (YoY)

22.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹757 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

10.3%

Average

Average margins

Net Margin

13.6%

Good

Strong bottom-line conversion

Current Ratio

1.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.67

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17151.7 / 17586.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,981 Cr	₹6,932 Cr	₹8,007 Cr	₹8,980 Cr	+21.7%
EBITDA	₹374 Cr	₹934 Cr	₹1,155 Cr	₹1,593 Cr	+62.0%
EBITDA Margin	7.5%	13.5%	14.4%	17.7%	—
PAT (Net Profit)	₹134 Cr	₹388 Cr	₹801 Cr	₹1,212 Cr	+108.5%
EPS	₹101.43	₹294.54	₹607.71	₹919.56	+108.5%
ROE	7.1%	17.2%	26.4%	28.9%	—
ROCE	13.6%	24.0%	37.1%	33.8%	—
Total Debt	₹955 Cr	₹525 Cr	₹17 Cr	—	—
Free Cash Flow	₹272 Cr	₹806 Cr	₹1,180 Cr	₹757 Cr	+40.7%

🟢 Revenue has grown at 21.7% a year over 3 years.

🟢 EBITDA has grown at 62.0% a year over 3 years.

🟢 EBITDA Margin has risen from 7.5% to 17.7% over 3 years (+10.2 pts).

🟢 PAT (Net Profit) has grown at 108.5% a year over 3 years.

🟢 EPS has grown at 108.5% a year over 3 years.

🟢 ROE has risen from 7.1% to 28.9% over 3 years (+21.8 pts).

🟢 ROCE has risen from 13.6% to 33.8% over 3 years (+20.2 pts).

🟢 Free Cash Flow has grown at 40.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,538 Cr

Total Liabilities

₹2,341 Cr

Cash & Equivalents

₹830 Cr

Operating Cash Flow

₹1,297 Cr

Capex

-₹540 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

63.2%

Corporate Actions

Dividend Rate

₹50

Ex-Dividend Date

09 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%

Recent News

1 positive1 mixed2 negative2 general

Force Motors Limited (NSE:FORCEMOT) Passed Our Checks, And It's About To Pay A ₹50.00 Dividend

Simply Wall Street, 05 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Force Motors publishes EGM notice for A equity shareholders

scanx.trade, 21 Sept

Force Motors slips 6% after May sales fall 15% Y-o-Y; exports down 37%

Business Standard, 02 JunResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Force Motors - Nalco among 5 stocks flashing bullish signals, hinting at a possible uptrend

The Economic Times, 13 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Force Motors shares hit 52-week low as May 2026 total sales decline 15%

Upstox, 02 JunResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Force Motors Joins ₹9,585-Cr Delhi-NCR Vehicle Replacement Scheme

Sahi, 30 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑