Force Motors Ltd

About

Force Motors Ltd was established in 1958, is the flagship company of the Abhay Firodia group. The company is the business of manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle East, Asia, Latin America, and Africa. It was known as Bajaj Tempo till 2005 [1]

Key Points

Collaboration
It has entered into a joint venture with MTU Friedrichshafen GmbH (a company of the Rolls Royce Group) in FY 18 to form Force MTU Power Systems Private Limited (FMTU) for engaging in the business of development, manufacture, and marketing of engines, engines for power generation, complete power generators and engines for various applications like Rail. It holds a 51% stake in FMTU, thus becoming a subsidiary of the Company. [1] [2]
In 2015, BMW assigned Force Motors to produce and test the engines for all cars and SUVs to be made in India [3]

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  • Market Cap 1,686 Cr.
  • Current Price 1,279
  • High / Low 1,740 / 1,051
  • Stock P/E
  • Book Value 1,389
  • Dividend Yield 0.39 %
  • ROCE -5.27 %
  • ROE -6.50 %
  • Face Value 10.0

Pros

  • Stock is trading at 0.92 times its book value
  • Company is expected to give good quarter

Cons

  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of -8.05% over past five years.
  • Company has a low return on equity of 1.75% for last 3 years.
  • Company might be capitalizing the interest cost
  • Earnings include an other income of Rs.41.13 Cr.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
823.65 1,060.64 802.48 755.15 869.11 653.78 185.40 694.58 495.68 612.53 643.33 937.74
768.35 990.28 733.25 720.38 784.13 582.09 237.54 630.52 466.56 652.42 614.86 897.97
Operating Profit 55.30 70.36 69.23 34.77 84.98 71.69 -52.14 64.06 29.12 -39.89 28.47 39.77
OPM % 6.71% 6.63% 8.63% 4.60% 9.78% 10.97% -28.12% 9.22% 5.87% -6.51% 4.43% 4.24%
Other Income 23.04 29.15 15.49 17.22 -19.21 -9.79 6.10 8.73 3.19 6.87 16.48 14.59
Interest 6.10 8.09 6.05 6.37 7.85 7.58 7.47 7.48 8.02 5.25 7.04 8.55
Depreciation 39.75 41.56 45.64 47.21 49.20 52.47 39.42 46.11 44.82 43.32 41.13 44.72
Profit before tax 32.49 49.86 33.03 -1.59 8.72 1.85 -92.93 19.20 -20.53 -81.59 -3.22 1.09
Tax % 15.85% 26.39% 20.77% 364.78% -58.26% -229.19% 30.07% 26.82% 7.70% 34.24% -35.40% 195.41%
Net Profit 27.34 36.67 26.15 4.19 13.77 6.06 -65.01 14.03 -18.98 -53.67 -4.38 -1.07
EPS in Rs 20.75 27.83 19.85 3.18 10.45 4.60 -49.34 10.65 -14.40 -40.73 -3.32 -0.81

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
975 1,010 891 1,973 2,022 2,364 3,025 3,069 3,423 3,652 3,081 1,988 2,689
1,084 1,123 1,371 1,919 1,925 2,217 2,751 2,801 3,155 3,378 2,820 1,964 2,632
Operating Profit -109 -113 -480 54 97 147 274 268 268 275 261 24 57
OPM % -11% -11% -54% 3% 5% 6% 9% 9% 8% 8% 8% 1% 2%
Other Income 102 44 655 44 60 66 71 86 69 82 3 2 41
Interest 23 50 54 8 9 7 5 6 7 15 28 28 29
Depreciation 44 50 55 70 85 81 92 113 129 151 195 174 174
Profit before tax -74 -168 65 19 63 125 249 235 201 190 42 -176 -104
Tax % 11% -6% 101% 25% -24% 19% 28% 23% 27% 25% -20% 30%
Net Profit -66 -179 -1 14 78 102 179 180 147 143 50 -124 -78
EPS in Rs -49.76 -135.68 -0.56 10.94 59.08 77.06 135.77 136.68 111.66 108.78 38.08 -93.83 -59.26
Dividend Payout % 0% 0% 0% 27% 5% 6% 7% 7% 9% 9% 26% -5%
Compounded Sales Growth
10 Years: %
5 Years: -8%
3 Years: -17%
TTM: 12%
Compounded Profit Growth
10 Years: %
5 Years: %
3 Years: %
TTM: -629%
Stock Price CAGR
10 Years: 10%
5 Years: -20%
3 Years: -8%
1 Year: 1%
Return on Equity
10 Years: %
5 Years: 5%
3 Years: 2%
Last Year: -7%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
13 13 13 13 13 13 13 13 13 13 13 13 13
Reserves 151 1 72 1,141 1,215 1,306 1,476 1,654 1,788 1,920 1,952 1,825 1,818
Borrowings 341 486 304 42 20 11 14 199 0 286 310 642 839
500 605 841 514 527 645 801 738 722 617 823 757 849
Total Liabilities 1,004 1,105 1,230 1,711 1,775 1,975 2,305 2,604 2,523 2,836 3,098 3,238 3,519
365 435 445 622 643 638 786 911 948 1,216 1,400 1,224 2,131
CWIP 55 43 79 189 206 240 205 220 369 372 445 725 146
Investments 2 2 0 0 0 0 14 9 10 23 78 100 116
583 625 705 900 925 1,097 1,300 1,463 1,196 1,225 1,175 1,189 1,126
Total Assets 1,004 1,105 1,230 1,711 1,775 1,975 2,305 2,604 2,523 2,836 3,098 3,238 3,519

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-23 16 -254 86 116 226 256 471 256 314 409 7
-61 -102 471 -304 -100 -96 -210 -621 -81 -606 -327 -333
94 100 -232 -16 -30 -45 -37 180 -223 256 -20 293
Net Cash Flow 10 14 -15 -234 -14 85 9 30 -47 -35 62 -32

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2008 Mar 2009 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 45 22 27 20 24 17 18 14 26 17 20 23
Inventory Days 165 185 225 99 97 87 92 73 68 66 91 136
Days Payable 206 243 214 65 77 87 70 80 81 52 95 143
Cash Conversion Cycle 4 -35 38 54 44 17 40 6 13 31 15 17
Working Capital Days 22 -14 30 25 24 15 24 53 43 51 20 22
ROCE % -16% -24% -42% 6% 10% 18% 14% 11% 10% 5% -5%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
61.86 61.86 61.63 61.63 61.63 61.63 61.63 61.63 61.63 61.63 61.63 61.63
4.47 4.25 4.23 4.08 3.93 3.55 3.36 3.31 3.07 3.08 2.67 2.39
3.38 3.38 3.68 3.17 1.75 1.99 2.01 1.51 2.05 2.33 2.54 2.67
30.29 30.51 30.46 31.12 32.69 32.83 33.00 33.55 33.25 32.96 33.16 33.31

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