The shares of this automotive manufacturing company hit a 5 percent upper circuit after announcing strong Q2 FY24 results.
In six months the shares have delivered a multibagger return of 202 percent to its investors. For example, if someone had invested Rs. 1 lakhs six months ago, then the worth of those shares would be Rs. 3.2 lakhs now.
With a market capitalization of Rs.5,086 crores, Force Motors Ltd shares opened Friday’s trading session on a positive note. The share hit a 5 percent upper circuit at Rs. 4,053 within a few minutes of the opening bell.
Such a positive movement was observed after the company announced its June-September results. The company’s revenue increased by 21 percent from Rs. 1,487.55 crores during the June quarter to Rs. 1,801.68 in the September quarter. In addition, the net profit zoomed by 36 percent from Rs. 68.59 crores to Rs. 93.89 crores during the same time frame.
Comparing these metrics on a YoY basis, the revenue jumped by 42 percent from Rs. 1,264 crores in Q2 FY23 to Rs. 1,801.68 crores in Q2 FY 24. Furthermore, net profit magnified by 367 percent from Rs. 93.89 crores to Rs. 19.28 crores during the same time horizon.
Looking at the important financial ratios, the return on equity (RoE) shifted from a negative 5.08 in FY 21-22 percent to a positive 7.38 percent during FY22-23 and the return on capital employed (RoCE) was improved by -3.35 percent to 12.07 percent during the same period.
According to the latest shareholding pattern, the Promoter has a 61.63 percent stake in the company, the Public or Retail Investors have 31.85 percent holdings, FIIs have 4.94 percent shares, and the remaining 1.58 percent are with DIIs.
Headquartered in Pune, Force Motors Ltd was incorporated in the year 1958. The company is India’s largest van maker. The company is completely vertically integrated, making its own components for the entire product range. The company is known for brands like the Tempo, Matador, Minidor, and Traveller.
Written By Vaibhav Patil
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