Force Motors Hits A Significant Milestone Of Rs 5,000 Per Share Today

Force Motors, the flagship company of the Abhay Firodia group, is involved in the manufacturing of fully vertically integrated small and light commercial vehicles, multi-utility vehicles, and agricultural tractors. Today, the company experienced a significant surge in its share price.

Share Performance

At the start of the day’s trading session, the stock opened at Rs 4,451 per share, higher compared to the previous day’s closing figure of Rs 4,420.15 per share on the NSE. During the intraday trading session, the company’s stock hit a significant level of Rs 5,000 per share for the first time ever. Throughout the day, it reached an all-time high of Rs 5,183 per share and finally closed the day at Rs 4,980 per share, representing an impressive rally of 12.7% on the BSE.

During the COVID fall, the stock hit a low price of Rs 591 per share. From this level, the stock entered into a prolonged consolidation for around 2.5 years. In May 2023, the stock broke out from the consolidation and started rallying, experiencing a 200% increase from the consolidation phase as mentioned in the image below.

The company’s current market capitalisation stands at Rs 6,490 crore, and the stock has generated a return of 290% in the past year and an impressive return of around 1,640% in the last decade.

Stock Price Chart (Monthly)

Financial Performance

During the December quarter of FY24, the company reported a robust growth in revenues, registering a 30% year-on-year (YOY) increase, reaching Rs 1,692 crore compared to the revenue of Rs 1,304 crore in the same quarter last year. The company’s operating profit stood at Rs 215 crore, resulting in an operating profit margin of 13%, a significant improvement from the earlier figure of Rs 54 crore and an operating profit margin of 4%.

Moreover, the company reported a net profit of Rs 85 crore, a substantial turnaround from the net loss of Rs 16 crore in the corresponding period. The company has demonstrated sound financial performance during the quarter, with improvements seen in the top line, operating profit, operating profit margin, and net profit, all showing significant YoY improvement.

Business Overview

Force Motors Limited is an India-based vertically integrated automobile company engaged in the design, development, and manufacture of automotive components, aggregates, and vehicles. The company’s product range includes light commercial vehicles (LCV), multi-utility vehicles (MUV), small commercial vehicles (SCV), special utility vehicles (SUV), and agricultural tractors.

Among its agricultural vehicles are models like Balwan 400 Super, Orchard Mini, Sanman 5000, and Abhiman 4X4. The commercial vehicle lineup comprises citilines, ambulances, school buses, passenger carriers, and goods carriers. Additionally, the company manufactures vehicles under the name Gurkha.

Force Motors provides transport solutions for both goods and passengers, offering rugged solutions for rural or urban, long-distance or local, over roads or tracks. The company exports its diverse range of products to various countries in the Middle East, Asia, Latin America, and Africa.

Investors should keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.