This S&P BSE Smallcap stock hit its 5% upper circuit on Thursday within the first hour of market open after it reported phenomenal growth in monthly sales volume and production volumes for the month of August 2023.
The stock has been on an uptrend since April 2023 and currently locked in 6% above its 20 day moving average and 97% above its 200 day moving average. The stock holds a market cap of Rs. 4,735 crore and is 1% away from its 52 week high.
Force Motors Ltd’s (”Force”) trading volumes grew 25% over yesterday’s volumes and 41% over the weekly average volume. The stock is a multibagger, returning 173% over a 1 year period, 224% over a 3 year period and 162% YTD. Meaning if you invested Rs. 1 lakh into Force 1 year ago, it would now be worth over Rs. 2.7 lakh! The company also has a strong financial book indicated by a Piotroski F score of 8.
In a filing dated 6th September 2023, Force Motors reported monthly sales and production volumes. The company’s products comprises Small Commercial Vehicles (SCV) plus Light Commercial Vehicles (LCV) and Utility Vehicles (UV) plus Sports Utility Vehicles (SUV) & Tractors. The production of SCVs & LCVs grew 39% YoY from 1,699 units to 2,360 units; production of UVs & SUVs grew 1% YoY from 663 units to 672 units, implying total production growth of 28% YoY from 2,362 units to 3,032 units.
The domestic sales of SCVs & LCVs grew 56% YoY from 1,241 units to 1,939 units; domestic sales of UVs & SUVs grew 16% YoY from 572 units to 662 units, implying total domestic sales growth of 43% YoY from 1,813 units to 2,601 units.
The exports of SCVs & LCVs grew 63% YoY from 414 units to 673 units; export of UVs & SUVs grew from 0 units to 2 units, implying total exports growth of 63% YoY from 414 units to 675 units.
Force Motors is an integrated automobile company, designs, develops, manufactures, and sells a range of automotive components, aggregates, and vehicles in India and abroad. The company’s shareholding has been stable over the past 4 quarters. Promoters hold 62% with no pledges, FIIs & DIIs hold 6% and the rest being held by the retail public. The stock has no short interest.
Written by Sandeep R
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