Force Motors - racing ahead!

(Sarabjeet Singh) #83

@advaitp , I agree sales growth had been flat to down however if you notice for past two quarters sales have improved and Ebita has increased YoY. PAT was down due to ‘other income’ which to me is a good sign as that excess amount would have been used for investment in upcoming joint venture.

Rest lets see how the story unfolds.

And I completely agree regarding disclosure part, company is not very open in sharing the info. That is little disappointing.

(Sarabjeet Singh) #84

(Sarabjeet Singh) #85

(Sarabjeet Singh) #86

And finally we see some positive growth numbers. I am happy with numbers however have few concerns as well. Will update bit later.

(Sarabjeet Singh) #87

  1. Intangible assets have doubled, however company has not given any details about these assets.

  2. Receivables have swelled to almost double.

  3. Inventories have also increased

(Sarabjeet Singh) #88


(Sarabjeet Singh) #89

Production is decreasing YoY for SCV and LCV for last 3 months however sales are increasing. Indication that company is trying to clear huge inventory it had piled earlier.

(Sarabjeet Singh) #90

Quarterly numbers are on expected lines showing decent growth, which I hope to only increase going forward.

However company Investor Relation is really bad. I sent an email and then after waiting for 2 weeks and escalation to one of senior executive I got a response stating your queries will be answered in AGM. Pathetic response !

(rajeshaaidu) #91

I think you should read the history of Firodia! And, then read point number 15 in Fisher’s book: common stocks and uncommon profit!

(Sarabjeet Singh) #92

@rajeshaaidu : Could you please highlight the concerns on Firodia’s history. Or any reference which we can go through.

I tried however could not find much.

(Sarabjeet Singh) #93

(rajeshaaidu) #94

It is very subjective thing! So I will refrain from writting on the forum. You can discuss through mail on the forum.

(Deepen Thakkar) #95

Came across this article today . Seems quite interesting and promising . Someone with sound knowledge of automobiles can help us more wrt engine capacity and all other features and whether this product will catch the market fancy

(Sarabjeet Singh) #96

(Advait) #97

What’s happening here? Force Motors just does not seem to improve its sales.

(Sarabjeet Singh) #98


Another really bad month. No doubt why stock price was falling so drastically.

(Deepen Thakkar) #99

Zoro99 what do you think the trend of falling sales by 20/30% will continue or its just for a brief period . I think consecutive 2 months drop is not a good sign .

(Sarabjeet Singh) #100

As per my initial research it should have turned around by now… however it just got worse…

Next leg of growth would come from their JV with RR and other international partners but really not sure when that would start…

(devarshi84) #101

Their products are extremely crude and outdated for the normal users. THe only selling point is toofan and minibus which has very less competition.

Also, with the whole industry slowing and with liquidity tightening the first to face the heat are the weaker players. There is a reason why Force Motors is still sub 5000cr company even with uvs, suv, lcv, buses tractors and engines manufacturing business.

On the other hand, with luxury car exports increasing from India, The increased demand for engines is a plus.

I wonder how tough it is extend the products into an consumer focused SUV only company like Jeep, Isuzu and Land Rover (Land Rover is a luxury brand though). I also recently read in the news that ISUZU’s stake was up for sale by Toyota and some other major investors.

To sum it up, Force motors is in a lucrative field with loads of opportunities, but they are not able to exploit them which is a big negative. But their quality control and excellence in engines business is the major lifeline. If they ever split the businesses, guess which business will go down like a rock?

(Sarabjeet Singh) #102