Stockizen Research | SEBI RA: INH000017675
Force Motors (FORCEMOT):
- CMP ~₹20,866 (as of 8 May 2026 close), trading near recent levels; you are stuck at ~8% unrealised loss (implied buy price ~₹22,500).
- 52w range: ₹9,380 low to ₹26,486 high; corrected ~21% from 52w high post Q4 results.
- Q4 FY26: Revenue ₹2,550 Cr ( 8.2% YoY, 19.8% QoQ) — highest ever quarterly revenue; PAT ₹278.5 Cr (-36% YoY, -31% QoQ) due to higher tax, one-offs and margin compression.
- FY26 full year: Revenue ₹9,167 Cr ( 12.8% YoY), PAT ₹1,212 Cr ( 51% YoY); debt-free status achieved (long-term debt minimal).
- Valuation: PE ~26x, PB ~6.6x (BV ~₹3,183); ROE 29%, ROCE 36%.
- Promoter holding stable at 61.63% (zero pledge); board recommended ₹50 dividend.
- Recent update: Launched new Force Traveller N Range (May 2026); acquired VTPL for ₹162 Cr.
- Critical view: Strong annual growth, debt reduction and new product launch are positives in auto ancillary/LCV space, but Q4 profit miss triggered sell-off; premium valuation offers limited margin of safety amid cyclical auto demand risks, raw material costs and execution on volumes. No immediate re-rating catalysts visible unless sustained revenue growth and margin recovery in Q1 FY27. Hold with caution if conviction on long-term auto recovery; consider strict stop-loss to protect capital given 8% loss position.
I/associates do not hold Force Motors as on this date.
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