The shares of the leading player in the automotive industry and India’s largest van maker, have seen a gain of over 560% in the past 12 months. On April 8, 2024. the company shares gained 12.7% to a 52-week high price of ₹9,240 per share.
Force Motors Ltd manufactures fully vertically integrated small and light commercial vehicles, multi-utility vehicles, and agricultural tractors. The firm serves both domestic and foreign markets.
Over the past five decades, the company has established partnerships with renowned global automotive leaders such as Daimler, BMW, Rolls-Royce, ZF, Bosch, and MAN. These collaborations have empowered the company to cultivate essential in-house expertise for leveraging cutting-edge technological advancements and crafting pertinent mobility solutions. Presently, the company exports its products to numerous countries across the Middle East, Asia, Latin America, and Africa.
On Monday, Force Motors Ltd. shares closed at ₹ 8,591 per share, up 4.84% from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹11,196 crore.
In March, the company witnessed significant growth across various vehicle categories, with production of Small Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Utility Vehicles (UV), Sports Utility Vehicles (SUV), and Tractors increasing by 30.2% compared to the same period last year, reaching a total of 3,152 units. Domestic sales also saw a substantial uptick, rising by 33.8% year-on-year to reach 3,248 units, while exports surged by 296% to 420 units.
Furthermore, Force Motors reported a notable 30% increase in revenue on a year-on-year basis, climbing from ₹1,304 crore in Q3FY23 to ₹1,692 crore in Q3FY24. The company’s net profit experienced a significant surge of 78% during the same period, transitioning from a loss of ₹16 crores to a profit of ₹85 crores.
As part of its strategic product rationalization program, Force Motors has taken the decision to discontinue its agricultural tractors business and related activities effective March 31, 2024. This move is aligned with the company’s focus on its core segments, including shared mobility transportation, last mile mobility, and the development of specialized vehicles for civil and defense applications.
During the fiscal year 2023, the company notably increased its investment in research and development, potentially leading to the development of new and more cost-effective vehicles.
Force Motors has strategized the launch of the Force Gurkha 5-Door, projected to debut by mid-2024. This addition to the Gurkha lineup will introduce a 5-door configuration, providing enhanced spaciousness and versatility compared to the existing 3-door model.
Expanding its global footprint, Force Motors embarked on a strategic venture by entering the Southern African market through a partnership with ETG Logistics. This collaboration aims to facilitate the distribution of various vehicles in the region, including the Gurkha 4×4 Off-roader, Traveller midi-bus, panel van, ambulance, and Kargo King pick-up range.
Furthermore, Force Motors has witnessed a remarkable surge in its stock performance, with shares surging by 120% over the past six months and experiencing an extraordinary 560% increase over the past year.
Over the past year, foreign institutional investors have augmented their stake in the company from 2.72% to 4.91%. The company’s promoter currently holds a stake of 61.63%, while retail investors possess a stake of 32.27%. These figures reflect the shareholding pattern as of the December quarter.
Written By Omkar Chitnis
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