You are on page 1of 29

Force Motors Ltd (500033)

Introduction
Force Motors Limited is an India-based automobile
company
Key features:
SCV, LCV, MUV, SUV(product range)
Agricultural tractors
Vertically integrated

Shareholding Pattern
Share Holding Pattern
Indian Promoter
Mutual Funds / UTI
FI/Bank/Insurance

28.38

FII

4.47
6.03

60.12

6.04 0.19 0.81

Other
Bodies Corporate
Others

Financial
Sights

Networth
1,400.00 1,316.88
1,200.00

1,226.02

1,152.95 1,143.30

1,000.00
800.00
600.00

334.28

400.00
200.00
0.00

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Total Assets
1,400.00 1,327.61

1,246.39

1,200.00

1,194.95 1,202.99

1,000.00
800.00

558.62

600.00
400.00
200.00
0.00

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Total Liabilities
1,400.00 1,327.61

1,246.40

1,200.00

1,194.94 1,202.99

1,000.00
800.00

558.61

600.00
400.00
200.00
0.00

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Total Expenses
2,500.00

2,222.84
1,922.94 1,949.28 2,000.44

2,000.00

1,448.77

1,500.00
1,000.00
500.00
0.00

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Total Income Rs. Cr.


3500

3107.24

3000
2500

2435.62
2079.6

2000

2046.81
1598.67

1500
1000
500
0

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Net Sales in Rs. Cr.


2,500.00

2,363.72

2,021.631,972.722,085.00

2,000.00

1,564.79
1,500.00
1,000.00
500.00
0.00

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Net Profit =TotalRevenue-Total Expenses


900

824.33

800
700
600
500
400
300
200
100
0

101.36

77.69

58.62

14.28
Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

EPS = net income / average outstanding common shares


700

625.62

600
500
400
300
200
100
0

76.93
Mar '15

58.97
Mar '14

44.49

10.84
Mar '13

Mar '12

Mar '11

EBITDA, PBT & PAT Rs. Cr.

1200

1106.8
1011.29

1000

824.33

800
600
400
212.78
156.66
200
124.95
101.36
62.64
0

Mar '15

149.9
81.96
58.62

97.53
19.13
14.28

Mar77.69
'14
EBITDA

Mar '13
PBT

Mar '12
PAT

Mar '11

Ratios

Current ratio = Current Assets / Current Liabilities


3

2.43

2.5
2

1.7

1.75

1.75

1.5

0.86

1
0.5
0

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Quick ratio = (current assets inventories) / current liabilities


1.8

1.64

1.6
1.4
1.2

1.09

1.04

0.8

0.56

0.6
0.4
0.2
0

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Debt Equity Ratio = Total Liabilities / Shareholders' Equity


0.8

0.67

0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

0.01

0.02

0.04

Mar '15

Mar '14

Mar '13

0.05
Mar '12

Mar '11

Dividend Per Share= Dividend /Number of Shares


12

10

10
8
6

5
3

Mar '14

Mar '13

2
0

Mar '15

Mar '12

Mar '11

Dividend Payout Ratio Net Profit = Dividend / Net Income


30

27.68

25
20
15

11.23
10

6.49

5
0

5.08
1.59

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Return On Capital Employed(%) = EBIT *100 / Capital Employed


20

18.81

18
16
14
12
10

9.9

5.76

6
4

2.29

2
0

7.12

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

Inventory Turnover Ratio = Sales / Inventory


8
7

6.72

6.54
5.36

5.17

Mar '14

Mar '13

5.72

4
3
2
1
0

Mar '15

Mar '12

Mar '11

Asset Turnover Ratio = Sales or Revenues / Total Assets


3.5

3.16

2.37

2.5
2

1.84

1.66

1.65

Mar '14

Mar '13

1.5
1
0.5
0

Mar '15

Mar '12

Mar '11

Investment Rationale
Post exit by Bajaj group in Aug 2014, the
company has seen acceleration in its
growth in sales and tie-ups/contracts.
It caters to world renowned companies
like Mercedes Benz India, BMW by
assembling engines and axles for them.
A debt free balance sheet gives the
company enough cushion to raise funds
for its future expansion plans.

Risks and Concerns


Extended slowdown in the
economy could impact its sales and
margins
Elevated levels of commodity
prices (steel, rubber, crude oil,
etc.) could lead to lower
profitability
Rising price of diesel could impact
sale of diesel vehicles.
Slowdown in tractors industry (due
to failure of monsoon or rural
slowdown) could affect fortunes of
its tractor segment.

Future Prospect
Foreign collaboration for new MPV
postponed but not cancelled
Promoters increased their stake as Bajaj
ends decade old alliance
Company is also setting up two
manufacturing facilities, one each in
Madhya Pradesh and Gujarat to
manufacture auto-components

Trends For One Year

Conclusion &
Recommendations
The stock does not seem expensive from P/E,
P/BV, Market Cap/Sales or EV/EBITDA from FY17
perspective.
However if the current market sentiments do not
improve soon, it could underperform in the
extremely short term before improving later on.

Q&A

Thank You
Madhur Telang (171)

Jimson Tellis (172)


Rishiraj Thakar (173)
Subhan Thakur (174)
Karan Trivedi (175

You might also like