1. At a Glance
Force Motors just pulled off what your ex never could: a full-blown transformation. From “Bajaj Tempo nostalgia” to a ₹22,584 Cr behemoth doing ₹8,484 Cr in sales with a 14% margin — this isn’t your grandpa’s utility vehicle stock anymore.
2. Introduction with Hook
Force Motors is the financial equivalent of a gym bro’s glow-up — scrawny in FY20, jacked in FY25, and now flexing a 30% ROCE like it owns the automotive gym.
- Net Profit (FY25): ₹801 Cr
- EPS: ₹607
- 3-Year PAT CAGR: 100%. Yes, triple digits. This isn’t a typo; it’s a turbo.
Let’s pop the hood and check what’s really driving this beast.
3. Business Model (WTF Do They Even Do?)
Force Motors makes:
- Light Commercial Vehicles (LCVs) — a.k.a. India’s unsung delivery heroes
- Multi-Utility Vehicles (MUVs) — school vans and paramilitary rides
- SCVs, Tractors, Special Vehicles — niche but profitable
Bonus: They also build engines for BMW and Mercedes in India (bet you didn’t see that coming) and own a JV (Force MTU) for diesel gensets.
Basically, they make everything that moves — except the Nifty50.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹8,072 Cr |
| EBITDA | ₹1,093 Cr |
| Net Profit | ₹801 Cr |
| OPM | 14% |
| ROCE | 29.8% |
| ROE | 20.7% |
| EPS | ₹607.71 |
Commentary:
Net profit grew like a viral reel — ₹-124 Cr loss in FY21 to ₹801 Cr profit in FY25. Margins hit the NOS button, now cruising above 14%. This is what a real turnaround arc looks like.
5. Valuation
CMP: ₹17,140 | EPS: ₹607.7 → P/E: ~28.2x
Book Value: ₹2,302 → P/B: 7.45x (yeah, that’s not cheap)
Method 1: Peer Avg P/E (~25x for CV/Auto)
FV = ₹607 x 25 = ₹15,175
Method 2: EV/EBITDA (~10x justified for high ROCE)
EBITDA = ₹1,093 Cr → EV = ₹10,930 Cr
Assuming debt-free (they are!) → Mcap = ₹10,930 Cr → FV/share = ₹8,930
Fair Value Range: ₹8,900 – ₹15,200
So current price is… somewhere between premium SUV and collector’s item territory.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26: ₹2,297 Cr revenue | ₹176 Cr PAT | EPS ₹140.6
- Appointed new VP – Corporate Strategy
- Installed secretarial auditors (signs of going full corporate governance mode)
- Delivered 21.8% YoY sales growth.
- Engines for luxury OEMs still humming.
Plot twist: The “other income” of ₹471 Cr in FY25 — possibly investment gains or some sneaky land sale?
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹13 Cr |
| Reserves | ₹3,020 Cr |
| Borrowings | ₹17 Cr |
| Total Assets | ₹5,134 Cr |
| Fixed Assets | ₹2,164 Cr |
| CWIP | ₹93 Cr |
Commentary:
Debt is down to just ₹17 Cr — which is less than the interest paid by your average startup CEO on his iPhone EMI. Cleanest sheet in the garage.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹532 Cr | ₹-256 Cr | ₹-207 Cr | ₹68 Cr |
| FY24 | ₹1,014 Cr | ₹-198 Cr | ₹-509 Cr | ₹308 Cr |
| FY25 | ₹971 Cr | ₹-351 Cr | ₹-562 Cr | ₹58 Cr |
CFO strong and stable. FCF generation is real. Company’s not borrowing, not diluting, and still growing. This is what “execution” looks like — sorry tech bros.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 20.7% |
| ROCE | 29.8% |
| P/E | 28x |
| PAT Margin | 9.5% |
| D/E | 0.01x |
Verdict:
These ratios are sexier than an Aston Martin ad shot in Ladakh. ROE, ROCE and margins are running like they had protein shakes for breakfast.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹5,029 Cr | ₹313 Cr | ₹134 Cr |
| FY24 | ₹6,992 Cr | ₹897 Cr | ₹388 Cr |
| FY25 | ₹8,072 Cr | ₹1,093 Cr | ₹801 Cr |
Analysis:
3x PAT in 2 years. If this was a movie, critics would say “unrealistic character development.”
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| M&M | ₹159,210 | ₹12,929 | 31x | 18.1% |
| Maruti | ₹152,913 | ₹14,500 | 27x | 15.9% |
| Tata Motors | ₹439,695 | ₹28,226 | 9x | 28.1% |
| Hyundai India | ₹67,654 | ₹5,492 | 31x | 42.1% |
| Force Motors | ₹8,484 | ₹861 | 28x | 20.7% |
Force is small but mighty — like a Mahindra Bolero showing up in a BMW rally.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 61.63% |
| FIIs | 9.77% |
| DIIs | 1.66% |
| Public | 26.94% |
| Shareholders | 59,419 |
No dilution, no stake erosion, and FIIs went from 2.5% to 9.8% in just 7 quarters. Smart money already turbocharged.
13. EduInvesting Verdict™
Force Motors isn’t a flashy EV unicorn or a meme stock. It’s a diesel-powered, profit-churning, high-margin comeback king. It took a few wrong U-turns in FY20–22 but now it’s driving straight down the expressway.
A sleeper stock with a rally engine. But check that “other income” before you ride shotgun.
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: Force Motors, Commercial Vehicles, Turnaround, EduInvesting Premium
