FUN-TECH Analysis of ForceMotors - CMP 1563

FUN-TECH Analysis of Force Motors- CMP - 1563 Rs 

 

Company Basic Information - Force Motors is a holding company engaged in manufacturing light commercial vehicles and utility vehicles, and engines.

 

Sector - Consumer Discretionary                Industry - Automobiles            Market Cap - 1999 Crore ( Small Cap )

    Technical Views 

• 1.      Resistance at 1560, breaking out can give good momentum. 
• 2.      On a weekly time frame, A Cup & Handle pattern is visible.
• 3.      Mutual Fund Increasing their shareholding from Sep 2020 continuously.

Fundamental Views

• 1.        Continuously paying healthy dividend.
• 2.       Q-Q sales are increasing.
• 3.       Analyst forecast its price growth around 15% in FY 21-22.
• 4.       Over the last 5 years, current ratio has been 139.96%, vs industry avg of 98.81%.
• 5.       Over the last 5 years, debt to equity ratio has been 15.47%, vs industry avg of 110.41%.

Action Plan

• 1.       Take a Positional trade with stop loss of 1400 on closing basis for Target of 1650-1700-1750
• 2.       Take a Short term trade with stop loss of 1400 on closing basis for Target of 1850-1900-1950

Please note that position sizing is your own responsibility, the more you invest/trade the more your risk reward will be. So take care of this parameter very seriously.