Force Motors Ltd. (FML) | BSE Code: FORCEMOT
Date : 31 - 05 - 2016
Market Cap: 3844.84 Cr
Book Value : Rs. 1135 | P/E : 21.67 | P/B : 2.6
Force Motors is a fully, vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.
Its range includes:
- Multi Utility Vehicles - Force Trax
- Light Commercial Vehicles - Force Traveller
- Small Commercial Vehicles - Force Trump
- Agricultural Tractors - Balwan & Orchard
- Personal Vehicles - Force Gurkha and Force One
Apart from these vehicles, FML produces and assembles engines for Mercedes and BMW in India.
The company has manufacturing facilities at Akurdi (Maharashtra), Pithampur (Madhya Pradesh), Urse (Maharashtra), Chengalpattu (Tamil Nadu) and would be inaugurating their fifth plant soon at Chakan (Maharashtra)
- The only company in the world to produce and assemble engines for both Mercedes and BMW
- Market leader in Vans segment in India (~60% of the van sales in India are through Force Traveller according to Mr. Prasun Firodia, Managing Director - FML)
- P/E ratio of 21.67 as against industry P/E of 39
- Almost debt free company
- The sales and net profit have been increasing at higher double digits rate in the past few quarters
- New registration of diesel cars above 2000 cc have been banned in Delhi and NGT plans to ban them in another 14 major cities too
- Return on equity is a low 7.9% but has been increasing over the quarters
Force One has not received a good response during its 5 year presence and the company plans to exit this segment. This gives an indication that the company would focus on their forte, commercial vehicles rather than spending energy in passenger vehicle segment.
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Disclosure: Invested and actively tracking.