The shares of this fully vertically integrated Indian automotive company surged 7 percent after securing an order for 2,978 Force Gurkha light vehicles from the Indian Defence Forces.
Stock Performance
With a market capitalization of Rs 11,739.91 crore, the shares went up 7 percent to an intraday high of Rs 9,444.85 per share compared to the previous close price of Rs 8,786.15 per share. The shares retraced from the day’s high and were trading at Rs 9,008, which is 3 percent higher than the previous close.
What Happened
Through an exchange filing, Force Motors announced that the company was declared as the L1 vendor by the Indian Defence Forces for the procurement of 2,978 Force Gurkha light vehicles (GS 4X4 800 kg Soft Top).
The order was placed by the Directorate General of Capability Development (CD-13/14), General Staff Branch, IHQ of the MoD (Army), New Delhi. The contract is to be executed in multiple tranches over a maximum period of 3 years.
Management Commentary
Mr. Prasan Firodia, Managing Director, Force Motor, commented “We are honored to continue our association with the Indian Defence Forces through this substantial order… This order is a testament to the trust and confidence Indian Defence Forces place in Force Motors”
Company Overview
Force Motors, the flagship company of the Abhay Firodia group, is a fully integrated Indian automotive company specializing in the engineering, development, and manufacture of various vehicles, aggregates, and components. The company operates a total of five state-of-the-art manufacturing units across India, led by Dr. Abhay Firodia.
Financials
When looking at the financial statements, the company reported a 12 percent increase in revenue from Rs 1,692 crore to Rs 1,889 crore in Q3 FY24-25. This was accompanied by a 35 percent growth in net profits from Rs 85 crore to Rs 115 crore during the same period.
Written by Shwetha Sairam
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