This S&P BSE Smallcap stock rose 5% on Friday within the first hour of market open after it reported phenomenal growth in monthly sales volume and production volumes for the month of September 2023.
The stock has been on an uptrend since April 2023 and currently trading 8% above its 20 day moving average and 98% above its 200 day moving average. The stock holds a market cap of Rs. 5,342 crore and is 2% away from its 52 week high.
Force Motors Ltd’s (”Force”) is a multibagger, returning 224% over a 1 year period, 283% over a 3 year period and 195% YTD. Meaning if you invested Rs. 1 lakh into Force 1 year ago, it would now be worth over Rs. 3.2 lakh! The company also has a strong financial book indicated by a Piotroski F score of 9 which is the maximum score that can be obtained.
In a filing dated 6th October 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 44% YoY from 1,885 units to 2,711 units; production of UVs & SUVs grew 4.3% YoY from 697 units to 727 units, implying total production growth of 33% YoY from 2,582 units to 3,438 units.
The domestic sales of SCVs & LCVs grew 27% YoY from 1,530 units to 1,938 units; domestic sales of UVs & SUVs degrew 26% YoY from 871 units to 642 units, implying total domestic sales growth of 8% YoY from 2,401 units to 2,580 units. The exports of SCVs & LCVs grew 73% YoY from 225 units to 389 units; export of UVs & SUVs grew 100% from 2 units to 4 units, implying total exports growth of 73% YoY from 227 units to 393 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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